Increasing Equity for Today’s Homeowners.
Homeowners today have substantial equity, although recent home price increases have abated. If you’re a homeowner, your net worth has increased over the past few years thanks to rising house prices. Here’s what that means for you, even as the market regulates.
How Equity Has Grown in Recent Years
Due to the imbalance between the number of homes for sale and the number of buyers in the market over the past few years, home prices have increased significantly.
And while price appreciation has slowed this year, that doesn’t mean you’ve lost all of the equity in your home. In fact, CoreLogic’s latest Home Equity Insights report reveals that the average homeowner’s net worth has increased by $34,300 in the past year alone.
And if you’ve been in your house longer, chances are you have more equity than you think.
While these are country numbers, if you want to know what happened in your area check out the map below from the Federal Housing Finance Agency (FHFA). It shows how much home prices have increased on average over the past five years, which is the main driver of stock growth.
Why This Is So Important Right Now
While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you sell your current house, the equity you’ve built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home.
So, if you’ve been holding off on selling, it may be time to find out how much equity you have and how it can help fuel your next move.