Chuncey Foreman Denver Colorado Realtor & Real Estate

  • Facebook
  • Google+
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube
  • Home
  • Free Resources
    • Buyer’s Guide
    • Seller’s Guide
    • Unlock Your Home’s True Value
    • Gain the Edge in Property Search
    • Current Mortgage Rate
    • Book a Time to Chat
    • FAQs
  • Search
    • Advanced Search
    • Map Search
  • Local Insights
    • Castle Rock
      • Discover Castle Rock
      • Neighborhoods of Castle Rock
        • Meadows Castle Rock
        • Terrain Castle Rock
  • Our Story
    • Get to Know Me
    • Mission and Vision Statement
    • Client Testimonials
    • Frequently Asked Questions
  • Contact
  • Insights & Inspiration

How Your Equity Can Grow over Time 🏡

July 8, 2022 By Chuncey Foreman

How Your Equity Can Grow over Time | Simplifying The Market

Record levels of home price appreciation have spurred significant equity gains for homeowners over the past few years. But, as Diana Olick, Real Estate Correspondent at CNBC, says:

“The stunning jump in home values over the course of the Covid-19 pandemic has given U.S. homeowners record amounts of housing wealth.”

That’s great for your home’s value over the last couple of years, but what if you’ve lived in your home for longer? You may be wondering how much equity you genuinely have.

The National Association of Realtors (NAR) has studied to calculate the typical equity gains over extended periods. The data they compiled could be enough to motivate you to move. Just remember, to find out how much equity you have in your specific home, you’ll want to get a professional equity assessment from a trusted real estate advisor.

How Your Equity Grows

Let’s start by establishing how you build equity in your home. While price appreciation is a factor that can help boost your equity, you also build equity over time as you pay down your home loan. NAR explains:

“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”

Average Equity Growth over Time

The study from NAR breaks down the typical equity gain over time (see graph below). Then, it calculates the equity a homeowner potentially gained if they purchased the median-priced home 5, 10, or 30 years ago and still own it.

How Your Equity Can Grow over Time | Simplifying The Market

These six-figure numbers are impressive and certainly enough to help you fuel a move into your next home, but they’re not a promised amount. Remember, your equity gain will be different. It depends on how long you’ve been in the house, your home’s condition, any upgrades you’ve made, your area, and much more.

If you want to find out how much equity you have, partner with a trusted real estate professional for an equity assessment of your home. They can provide an expert opinion on what your house is worth today and how the equity you’ve gained over time can help you purchase your next home. It may be some (if not all) of what you need for your next down payment.

Bottom Line

If you’re considering selling your house and moving, home equity can be a real game-changer, especially if you’ve been in your current home for a while. Let’s connect if you’re ready to find out how much equity you have.

Filed Under: home seller, move-up buyers, Pricing

Recent Posts

  • Beginning with Pre-Approval
  • Non-Financial Reasons to Buy a Home
  • SEP 2023/OCT 2023 NEWSLETTER
  • Home Equity’s Impact on Moves
  • Time to Sell Your Home?🤔
  • Why Is Housing Inventory So Low?
  • Price Appreciation Drives Wealth Growth
  • Retirement House Sale & Equity Guide
  • Affordable Smaller Homes Ahead
  • 2023 Home Price Forecasts Revised Up
* * , *
{{{disclaimer_txt}}}
Listing Data last updated: 26th September, 2023 18:00 MST
Equal Housing Opportunity
Privacy Policy
Service by Buying Buddy® IDX CRM
Copyright © 2003 - 2023 Buying Buddy. All rights reserved.
Equal Housing
Blue Fire Group    Real Estate Websites
© 2023 Copyright
LAC
Buying Buddy    Powered By Buying Buddy ®