Homeowners Still Have Positive Equity Gains over the Past 12 Months
As a homeowner, you likely experienced an increase in your overall net worth due to the significant rise in home prices over the past few years. Let's explore how this happened and what it means for you now that the market has stabilized.
Equity is the current value of your home minus what you owe on the loan.
In recent years, the number of buyers looking to buy homes has significantly exceeded the number of available homes for sale. This discrepancy caused home prices to skyrocket as a result.
And while home price appreciation has moderated this year, and even depreciated slightly in some overheated markets, that doesn’t mean you’ve lost all the equity you gained during the pandemic frenzy.
To prove you still have equity you can use, the latest Homeowner Equity Insights from CoreLogic finds the average homeowner equity has actually grown by $34,300 over the past 12 months.
That’s right, despite the headlines, the average homeowner still gained positive equity over the last year in just about every market. Although the growth isn't as extreme due to a slackening of residential property costs, it's still significantly progressive. Without a doubt, if you have been in your current home for over twelve months, you likely possess more equity than what can be quantified.
If you are interested in learning about the housing market fluctuations in your area over the past year, CoreLogic's map can provide valuable insight. Take a look below and see what happened nationally as well!
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.
If you have been hesitant to start selling due to the recent headlines, remember that your equity has grown over the years and can help support your journey. Therefore, don't be afraid to take advantage of this opportunity!
If you're looking to relocate, your hard-earned equity can be a major benefit. If you want to discover the equity of your current home and leverage it for a future purchase, then let's chat! Don't wait - seize this opportunity to maximize your return on investment today.