Recent years have seen significant growth in home equity, even though the pace of home price appreciation has slowed. Homeowners have seen a boost in their net worth due to rising home prices, which is expected to continue. The Homeowner Equity Insights report from CoreLogic indicates that the average homeowner’s equity has grown by $34,300 over the past year, a considerable increase.
The FHFA map provides a regional breakdown of the rise in home prices over the past five years, which has been a significant factor in home equity growth.
While equity boosts overall net worth, it also provides homeowners the means to achieve other goals, such as purchasing a new home. In addition, when a homeowner sells their current property, the equity they have built up is returned to them in the sale, which can be used to cover a significant portion of the down payment on their next home. Therefore, homeowners need to understand the value of their equity and how it can help them move forward with their plans.
Homeownership is a long-term investment, and the equity gained over time can have a significant impact. Homeowners considering selling their homes should find out how much equity they have and how it can be used to fuel their next purchase. Let’s connect.