@owunnavictor: Replying to @🫥 : This is a question homeowners should ask before assuming that rising home prices automatically mean they are getting richer. If you bought a home for $300,000 and 10 years later it is worth $450,000, it looks like you made $150,000. But there’s another way to look at it. If prices across the economy rose significantly during those 10 years, part of that increase may reflect the dollar's declining purchasing power. That doesn’t mean the home didn’t appreciate. It means nominal appreciation and real appreciation are not the same thing. For example, if inflation averaged 3% annually for 10 years, something that cost $300,000 would need to cost about $403,000 to have the same purchasing power. So if your home is worth $450,000, the nominal increase is $150,000, but the inflation-adjusted increase is much smaller. That's why I don’t think homeowners should look at a property’s price increase in isolation. You also have to consider: Mortgage interest. Property taxes. Insurance. Maintenance. Repairs. Closing costs. Renovations. And the opportunity cost of the money tied up in the property. Homeownership can absolutely build wealth. But a higher home price does not automatically mean you created $150,000 of real wealth. Run the numbers in real dollars, not just the number you see on Zillow. Your home may be appreciating. But first ask: how much of that appreciation is actually beating inflation? #financialliteracy #mortgagetips #mortgage #renting

Victor C. Owunna

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Region: US

Saturday 19 September 2026 11:38:12 GMT