Equity Gains for Today’s Homeowners
Today’s homeowners have significant equity, even though home prices have fallen in recent years. Your net worth has increased in recent years due to rising home prices. This is what it means for you, even though the market slows down.
The imbalance between the number of homes for sale and the number homebuyers on the market over the last few years led to home prices rising substantially.
While price appreciation has slowed in recent years, this doesn’t mean that you have lost all your equity in your home. CoreLogic’s latest Homeowner Equity Insights report shows that the average homeowner has seen his equity increase by $34,300 in the past year.
If you’ve lived in your home for longer than that, you may have more equity than you realize.
This is the national average, but if you’re curious about what happened in your local area, take a look at the map below, which was created by the Federal Housing Finance Agency. It shows the average increase in home prices over the past five year, which has been a key driver of equity growth.
Why this is so important right now
Equity can help you increase your net worth and also help you reach other goals like buying your next house. The equity you have built up in your house is returned to you when it’s sold. It could be the right amount to pay a large part, if not all, of your down payment for your next home.
If you’ve been putting off selling your home, it might be time to assess how much equity you have, and how it can fuel your next move.
Bottom LineHomeownership can be a long-term endeavor. The equity you have built up over the years can make a significant difference in your ability to move. Talk to a local realtor to find out how much equity you have in the home you own and how you can use it for your next purchase.
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