What can your home’s equity do to help you in today’s market?
Do you know how much equity you have in your home right now? Today let’s talk about how much the average homeowner has gained in equity over the past year.
If you own a home, you should know that your net worth just got a big boost because of rising equity. However, what is equity? Equity is the current value of your home minus what you still owe on your loan, and you might be building your equity far faster than you’d think.
Home values are increasing thanks to low housing supply and high buyer demand. Since there aren’t enough homes available to meet demand, buyers have broken out into bidding wars over the properties that are for sale. That, in turn, drives home prices up.
Throughout 2021, home prices rose by 18%—the largest annual gain recorded in the 45-year history of the CoreLogic Home Price Index. According to their report, the average homeowner’s equity has grown by $55,000 over the last 12 months.
How does rising equity impact you? In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home.
When you sell your house, the equity you’ve built up comes back to you in the sale. In a market where you’re gaining so much equity, that money may be just what you need to cover a large portion (if not all) of the down payment on your next purchase. If you’ve been hesitant to sell your home because you’re concerned about being priced out of your next home, rest assured that your equity can help fuel your move.
If you have any questions about selling your home, would like to know how much equity you have in your property, or want to learn more about using equity to power your next purchase, don’t hesitate to reach out to us by phone or email. We’d love to connect with you.