If you’re a homeowner, your net worth got a big boost over the past few years thanks to rapidly rising home prices. Here’s how it happened and what it means for you, even as the market moderates.
Equity is the current value of your home minus what you owe on the loan.
Because there was a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase over the past few years, home prices appreciated substantially.
And while home price appreciation has moderated this year, and even depreciated slightly in some overheated markets, that doesn’t mean you’ve lost all the equity you gained during the pandemic frenzy.
To prove you still have equity you can use, the latest Homeowner Equity Insights from CoreLogic finds the average homeowner equity has actually grown by $34,300 over the past 12 months.
That’s right, despite the headlines, the average homeowner still gained positive equity over the last year in just about every market. While the gains aren’t as dramatic as they were in the previous quarter due to home price moderation, they’re still significant. And if you’ve been in your home for longer than a year, chances are you have even more equity than you realize.
While that’s the national number, if you want to know what happened over the past year in your area, look at the map below from CoreLogic:
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 it may be just what you need to cover a large portion – if not all – of the down payment on your next home.
So, if you’ve been holding off on selling because you weren’t sure what the headlines meant for your bottom line, rest assured you’ve still gained equity in recent years, and it can help fuel your move.
Bottom Line
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, let’s connect.
To view original article, visit Keeping Current Matters.
Are The Top 3 Housing Market Questions on Your Mind?
When it comes to what’s happening in the housing market, there’s a lot of confusion going around right now.
Is Wall Street Buying Up All the Homes in America?
Are institutional investors, like large Wall Street Firms, really buying up so many homes that the average person can’t find one?
Are There Actually More Homes for Sale Right Now?
If you’re looking to buy, you may have slightly more options than you did in recent months, but you still need to brace for low inventory.
Is Your House the Top Thing on a Buyer’s Wish List this Holiday Season?
Anyone shopping for a new home between Thanksgiving and New Year’s is likely going to be a serious buyer.
People Are Still Moving, Even with Today’s Affordability Challenges
It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
The Latest 2024 Housing Market Forecast
The housing market is expected to be more active in 2024 and that may be in part because there will always be people whose lives change and need to move.