Equity Gains for Homeowners Today Homeowners today have a lot of equity, even though home prices have been going up less recently. In the past few years, rising home prices have helped homeowners increase their net worth. Even though the market isn’t going up or down, here’s what it means for you.
How Equity Has Grown in Recent Years
Over the past few years, home prices have gone up a lot because there were more homes on the market than there were people looking to buy them.
Even though home prices haven’t gone up as much this year, that doesn’t mean you’ve lost all the equity you’ve built up. In fact, the average homeowner’s equity has grown by $34,300 in the past year, according to the latest Homeowner Equity Insights report from CoreLogic.
And if you’ve lived there longer than that, you probably have even more equity than you think.
This is the number for the whole country. If you want to know what happened in your area, you can look at the map below, which comes from the Federal Housing Finance Agency (FHFA). It shows how much home prices have gone up on average over the past five years. This is a big reason why equity has grown.
Why This Is So Important Right Now
Even though equity helps you make more money overall, it can also help you reach other goals, such as buying your next home. When you sell your current house, you get back the equity you’ve built up. This could be just what you need to pay for a large part, if not all, of the down payment on your next house.
So, if you haven’t sold yet, you might want to find out how much equity you have and how it can help you make your next move.
Homeownership is a long-term game, and the equity you’ve built up over time can make a big difference if you want to move. Talk to a real estate agent in your area to find out how much equity you have in your current home and how you can use it to pay for your next purchase.