Equity Gains for Today’s Homeowners
Even though recent home price appreciation has slowed down, many homeowners today still have a sizable amount of equity. If you own a property, the recent increase in housing prices has increased your net worth. Even when the market softens, here is what it means for you.
How Equity Has Increased Recently
Over the previous few years, there was an imbalance between the quantity of homes for sale and the number of purchasers in the market, which led to a significant increase in property prices.
Despite the fact that this year's price growth has halted, you haven't necessarily lost all of your home's equity. In fact, according to CoreLogic's most recent Homeowner Equity Insights study, the average homeowner's equity has increased by $34,300 just in the last year.
And if you've owned your house for a longer period of time, it's likely that you have more equity than you know.
While that is the nationwide figure, you can view your local statistics by looking at the map below from the Federal Home Finance Agency (FHFA). It demonstrates the average annual increase in home prices over the previous five years, which has been a key factor in equity growth.
Why It's So Vital at This Time
Equity can assist you in achieving other objectives, such as purchasing your next house, in addition to helping you enhance your overall net worth. The equity you've built up in your present home is returned to you when you sell it, and it can be just what you need to pay for most or even all of the down payment on your next home.
Hence, if you have been putting off selling, now might be the moment to learn how much equity you have and how it can influence your next course of action.
To sum up
Homeownership is a long-term endeavor, and if you're considering moving, the equity you've built up might have a significant impact. Let's connect to see how much equity you have in your existing house and how to use it to finance your next buy.