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What a home appreciation example can and cannot tell you

A simple growth example can explain compounding, but it cannot tell you whether buying now is affordable or what a particular home will be worth.

By Eric Hamilton · Published October 7, 2026

Originally uploaded February 10, 2025 · 1:28 · Watch on YouTube

Written companion added October 7, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Read the example as an assumption

The video starts with a hypothetical $400,000 home and assumes four percent annual appreciation. Under that assumption, the value would reach $416,000 after one year, about $486,661 after five and $592,098 after ten. The arithmetic describes a scenario. It does not establish a current DuPage median price, an expected return or a guaranteed gain.

A value increase is not the whole ownership result

To evaluate buying, consider borrowing costs, taxes, insurance, maintenance and transaction expenses alongside any change in value. Equity also depends on the mortgage balance. If you later sell, the amount available after payoff and selling costs differs from the headline property value. A projection that leaves those pieces out is incomplete.

Give waiting a fair comparison

Waiting may mean continued rent and exposure to future prices, but it can also allow more savings or a stronger financial position. Compare both paths using your actual budget and several possible home value outcomes, including flat or declining values. Buy when the payment, reserves and expected time in the home fit your life, rather than treating assumed appreciation as a deadline.

Is four percent a guaranteed annual return?

No. It is the assumption used in the example. Actual property values can rise or fall.

Does waiting automatically cost me the projected appreciation?

No. That comparison also needs ownership costs, rent, savings and the uncertainty of future values.

Sources and scope

Adapted from the video published 2025-02-10. Historical figures, market descriptions and service examples are not current quotes, availability promises or forecasts.

  1. CFPB: Preparing to shop for a mortgage Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

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