If you own a home, your net worth likely just got a big boost, thanks to rising home equity. Equity is the current value of your home minus what you owe on a loan. And today, based on recent home price appreciation, you’re building that equity far faster than you may expect – here’s how it works.
Because there’s an ongoing imbalance between the number of homes available for sale and the number of buyers looking to make a purchase, home prices are rising. That means your home is worth more in today’s market because it’s in high demand. As Patrick Dodd, President, and CEO of CoreLogic, explains:
“Price growth is the key ingredient for the creation of home equity wealth. . . . This has led to the largest one-year gain in average home equity wealth for owners. . . .”
Because your home value has likely climbed, your equity has also increased. According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $64,000 over the last 12 months.
While that’s the nationwide number, if you want to know what’s happening in your area, look at the map below. It breaks down the average year-over-year equity growth for each state using the data from CoreLogic.
The Opportunity Your Rising Home Equity Provides
In addition to building your overall net worth, equity can help you achieve other goals like buying your next home. When you sell your current house, the equity you built comes back to you in the sale. In a market where homeowners are gaining so much equity, it may be just what you need to cover a significant portion – if not all – of the down payment on your next home.
So, if you’ve been holding off on selling or are worried about being priced out of your next home because of today’s ongoing home price appreciation, rest assured that your equity can help fuel your move.
If you’re planning to make a move, the equity you’ve gained can make a significant impact. Let’s connect so you can get a professional equity report on your house to find out just how much equity you have in your current home and how you can use it to fuel your next purchase.