Even with sky-high prices and interest rates, buying a house can still be financially beneficial due to the power of compound interest and potential appreciation. Compound interest allows you to build wealth over time by earning interest on your total balance, including the interest already earned. Over time, these effects can add up to a significant amount of savings. Additionally, housing prices have historically appreciated, meaning that purchasing a house can be a good investment if the property can be bought at a fair market value. In this way, homebuyers may have the potential to realize price appreciation as the value of the home grows over time.
