Porchfest 2023 was the 9th Annual Porchfest Music Festival highlighting live local bands, and a variety of food, drink, and arts vendors. Tens of thousands of people pour into the streets of Springfield and are immersed in the historic beauty of the architecture and sprawling porches.
Nick Clauser, agent with Homegrown Group stated, “Wow the homeowners that purchased in this neighborhood while the getting was good have done well. What were the homes in this neighborhood worth a decade ago? Three decades ago?”
The Springfield Preservation and Revitalization (SPAR) Council, was formed in 1974 and has done an amazing job.
The Springfield neighborhood has seen a beautiful revitalization in the last decade, and I wondered how much the value of homes in the neighborhood had changed.
In 2015, which was the year of the first annual Porchfest, there were 107 residential Springfield sales for the year in the MLS, and the average sales price was $122,459.
As of November 4, 2023, the date of the 9th Annual Porchfest, there were 85 residential Springfield sales of the year in the MLS, and the average sales price was $351,376.
Wow so prices have tripled in Springfield in a decade!
Homeownership is an extremely important indicator for wealth. It’s often called a forced savings account because as the homeowner makes the mortgage payments, their equity grows. Furthermore, it’s a wonderful hedge against inflation. Mortgage payments remain steady over the course of 15, 20, or 30 years.
What have national rent trends done in that same time period?
In that same time, rent payments continued to increase every year. According to Trading Economics, “Rent Inflation in the United States averaged 4.20 percent from 1954 until 2023.”
Check out these 30-year rent inflation numbers. Imagine the year is 2053. You could either be finishing off the last of your payments on a 30 year mortgage, or staring down the barrel of a rent payment of over three times higher per month.
What can we learn from this?
As soon as you’re financially able, stop renting and begin your home ownership journey. Start building equity!