Equity Gains for Today’s Homeowners

Homeowners currently possess considerable equity in their homes, despite the recent slowdown in home price appreciation. As a homeowner, the value of your assets has likely increased due to the rise in home prices over the past few years. This development has important implications for you, even as the housing market stabilizes.

How Equity Has Grown in Recent Years 

Due to a disparity between the number of homes available for sale and the number of buyers in the market in recent years, home prices experienced a significant increase. However, although home price appreciation has slowed down this year, homeowners have not lost all their equity. According to CoreLogic’s latest Homeowner Equity Insights report, the average homeowner’s equity has increased by $34,300 over the past year alone. If you’ve owned your home for a longer period, it is highly likely that you have even more equity than you realize. While this is the national average, you can use the map provided by the Federal Housing Finance Agency (FHFA) below to see how much home prices have risen on average in your area over the past five years, which has been a significant driver of equity growth.

Why This Is So Important Right Now 

Equity not only contributes to your overall net worth but also helps you achieve other objectives, such as buying a new home. When you sell your current home, the equity you have accumulated from the sale can be used to pay a significant portion, if not all, of the down payment on your next home. Therefore, if you have been hesitant to sell your property, it may be worth determining how much equity you have and how it can be used to facilitate your next move.

Bottom Line

Owning a home is a long-term commitment, and if you are considering a move, the equity you have accumulated over time can significantly impact your decision. If you want to discover how much equity you have in your current home and how it can be used to finance your next purchase, please get in touch, and we can explore your options together.

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