In the fluctuating real estate market, homeowners have experienced a bright spot – significant equity gains in recent years. As home prices have been consistently rising, homeowners have found their net worth steadily increasing, thanks to this building equity.
Even as the pace of home price growth slows down, homeowners continue to enjoy the benefit of accruing equity. Nevertheless, it’s important to understand how this equity has grown, what it means, and how you can leverage it. Let’s delve into these aspects for a comprehensive understanding.
Understanding Equity Growth
The past few years have seen a unique housing market imbalance. We’ve had a surplus of homebuyers, but only a limited number of homes for sale. This has led to a surge in home prices, enabling homeowners to accumulate substantial equity in their properties.
The pace of home price appreciation has gone down recently. However, it’s crucial to understand that this doesn’t erase the equity you’ve already built up in your home. The latest Homeowner Equity Insights report from CoreLogic is enlightening.
It shows that homeowners have seen an average equity increase of $34,300 over just the past year. If you’ve owned your home for a longer period, your equity likely increased even more. The gains over time can be quite significant.
National Trends and Local Insights
While $34,300 is a national average, the equity growth can vary across different regions. To gain insights into equity growth trends in your local area, the Federal Housing Finance Agency (FHFA) offers a comprehensive map. This can provide homeowners a better understanding of the equity changes in their specific locale.
The Power of Equity in Your Next Move
Equity isn’t just a means to boost your net worth. It’s a powerful tool that can help you achieve your other real estate objectives. If you’re contemplating buying a new home, the equity you’ve amassed in your current house can play a significant role.
Upon selling your home, the collected equity translates into proceeds from the sale. This money can potentially cover a large portion, if not all, of the down payment on your next home.
If you’ve been considering selling your house, now might be the perfect time to explore your home’s equity. This understanding could be pivotal in planning your next step in the real estate market.
Taking Action
Understanding the dynamics of equity growth can pave the way to making informed decisions in your real estate journey. If you’re a homeowner looking to leverage your equity in the best way possible, it’s time to take action.
Contact a PPS Realty real estate expert to explore your options. They can help you understand how your home equity can support your next move. Don’t let this opportunity slip away – reach out today!
