If you own a home, your net worth has likely increased significantly over the past year. Home prices have been rising steadily, which means you’re building equity much faster than you might think! Here’s how it works.
What is Equity?
Equity is the difference between the current value of your home and the amount you owe on your mortgage. Over the past year, high demand and limited supply have driven home prices up, directly increasing homeowner equity.
How Much Equity Have You Earned?
According to CoreLogic’s latest Homeowner Equity Insights, the average homeowner’s equity has grown by $28,000 in the past year alone!
Bought Before the Pandemic?
If you purchased your home before the pandemic, the news is even better. Realtor.com data shows that home prices surged by 37.5% from May 2019 to May 2024. Ralph McLaughlin, Senior Economist at Realtor.com, highlights:
“Homeowners have seen extraordinary gains in home equity over the past five years.”
How Your Rising Home Equity Can Help You
The substantial equity homeowners have built up offers significant benefits. You could use this equity to start a business, fund education, or afford your next home! When you sell, the equity you’ve accumulated could cover a large portion – or even all – of your next home’s down payment.
Bottom Line
Planning to move? The equity you’ve gained can be a major asset. Curious about how much equity you have and how to use it for your next home? Connect with The Durham Team, your local real estate experts! We can help you understand your home equity and explore your options.