Equity Gains for Today's Homeowners
Today’s homeowners are sitting on significant equity, even as home price appreciation has eased recently. If you’re a homeowner, your net worth got a boost over the past few years thanks to rising home prices. Here’s what it means for you, even as the market moderates.
How Equity Has Grown in Recent Years
Over the past few years, there weren't as many homes for sale and plenty of home buyers, which caused home prices to appreciate substantially.
Even though price appreciation has slowed this year, it doesn’t mean you’ve lost all the equity in your home. In fact, the latest Homeowner Equity Insights report from CoreLogic finds the average homeowner’s equity has grown by $34,300 over the past year alone.
If you’ve been in your home longer than a year, chances are you have even more equity than you realize.
You can look at the map below from the Federal Housing Finance Agency (FHFA) to see what is happening in different areas of the country. It shows on average how much home prices have risen over the past five years, which has been a major driver behind equity growth.
Why This Is So Important Right Now
While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you sell your current house, the equity you’ve built up comes back to you in the sale, and may be just what you need to cover a large portion – if not all – of the down payment on your next home.
If you’ve been holding off on selling, it may be time to find out how much equity you have and how it can help fuel your next move.
Homeownership is a long game, and if you’re planning to make a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, connect with the Just Say Home KC Team at 816-656-2816.