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Considering the Eighth Wonder of the World and Housing

In my 15 years of mortgage lending, I've seen Northern Arizona homeowners leverage their equity in a variety of life-changing ways.

Albert Einstein once said: “Compound interest is his eighth wonder of the world. He who understands it will earn it…He who does not understand it…will pay it.”

Stability, comfort, privacy, security, community, and personal expression are among the top non-economic reasons for homeownership. These are all very attractive indeed, and each homeowner has different priorities, but the “eighth wonder of the world,” as Einstein called it, is that the appreciation of a home is compounded, so every home It has a huge impact on the owner. Sure, the market moves in cycles and you can get caught up in the small movements of the moment, but if you think about the big picture, the value of a home appraisal to a homeowner's net worth can be amazing. .

Past progress, future progress

Arizona is located in a “mountainous region” (see chart) and has experienced some of the highest real estate value growth in the country, well above the national average. In 1990, the median home price in Arizona was approximately $79,700. The median home price in Arizona as of 2023 was $429,900, and of course Flagstaff's median home price was higher at $588,000. My purpose is not to analyze the difference in affordability 30 years ago and today, but rather to be in awe of the hundreds of thousands of dollars that have a significant financial impact on homeowners. In my 15 years of mortgage lending, I've seen Northern Arizona homeowners leverage their equity in a variety of life-changing ways.

Below is a quick list of some of the different uses for stocks that I've seen over the years.

  • home extensions and improvements
  • Use for business startup
  • Replenishment of retirement allowance
  • Utilization for home education
  • Used to help a family buy a home
  • It receives special tax protection and is inherited as an asset from generation to generation.

Homeownership is a family and community affair, and the value of that equity permeates far beyond the individual homeowner. Although we don't have a crystal ball to predict future valuations, we do know that Arizona has remained among the top 10 most populous states for nearly a decade, and we don't expect that to change anytime soon. Masu. Based on projections modeled at national appreciation rates, slightly lower than Arizona's average sales price, the net worth impact and compounding value of homeownership over the next five years looks very positive.

Therefore, the influence of Einstein's Eighth Wonder of the World will undoubtedly continue to have a positive impact on future generations of Northern Arizona homeowners. FBN

Written by Chris Hallows

For more information or to make a reservation, please visit: ChrisHallows.Benchmark.us Or call us at 928-707-8572. The Flagstaff location is 824 W Rte 66 Suite A-3.

Chris Hallows is a branch manager and senior mortgage advisor at Benchmark Mortgage Flagstaff.

NMLS 306345 Ark-La-Tex Financial Services, LLC NMLS 2143 | Equal Housing Loaner

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