If you’re a homeowner like me and your net worth has received a big boost over the past few years thanks to rapidly rising home prices. Here’s what it means for us, even as the market moderates.
During the past few years, there was a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase. As a result, home prices appreciate substantially.
Here's what I got from CoreLogic, latest Homeowner Equity Insights shows that the average homeowner equity has actually grown by $34,300 over the past 12 months. Although the headlines indicated that homeowners lost equity in most markets last quarter, the average homeowner actually gained positive equity over the last year in just about every market. The gains aren’t as dramatic as they were in the previous quarter due to home price moderation, but they are still significant. And if you’ve been in your home for longer than a year, chances are you have even more equity than you realize.
While that’s the national number, if you want to know what happened over the past year in your area, look at the map below from CoreLogic:
Why is this so important for us right now? Equity can be used as a tool to achieve our goals, such as buying our next home. When you sell your current property, the equity you’ve built up comes back to you in the sale and can help cover a large portion of the down payment on your next property.
So, if you’ve been holding off on selling because you weren’t sure what the headlines meant for your bottom line, rest assured you’ve still gained equity in recent years, and it can help fuel your move.
If you’re planning to make a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect!
