As Home Equity Rises, So Does Your Wealth

Homeownership is still a crucial part of the American dream. For those people who own a home (and those looking to buy one), it’s clear that being a homeowner has considerable benefits both emotionally and financially. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your wealth comes in the form of equity. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. The best thing about equity is that it often grows without you even realizing it, especially in a sellers’ market like we’re in now. In today’s real estate market, the combination of low housing supply and high buyer demand is driving home values up. This is giving homeowners a significant equity boost. According to the latest data from CoreLogic, the amount of equity homeowners have has continued to grow as home values appreciate. Here are some key takeaways from the Homeowner Equity Insights Report:

The average homeowner gained $51,500 in equity over the past year
There was a 29.3% increase in national homeowner equity year over year

To give you an idea of what that looks like in your area, the map below shows the average equity gains by state.

As Home Equity Rises, So Does Your Wealth | Keeping Current Matters

What does all of that mean for you?

If you’re already a homeowner, you likely have more equity in your house than you realize. The numbers in the map above reflect year-over-year growth. If you’ve been in your home for longer than a year, you’ll likely have even more equity than that. That equity can take you places. You can use the equity you’ve gained to fuel your next move, achieve other life goals, and more. On the other hand, if you haven’t purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile goal. Homeowners across the nation gained an average of over $50,000 in equity this year. Don’t miss out on this chance to grow your net worth.

Bottom Line

If you want to learn more, talk with a real estate professional. A trusted advisor can help you understand where home prices are today, how they contribute to a homeowner’s net worth, and the impact equity can have when you own a home. The post As Home Equity Rises, So Does Your Wealth appeared first on Keeping Current Matters.

Written by KCM Crew on September 30, 2021. Posted in Content Hub, First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers, Pricing
Tags: Finance, gatlinburg real estate, Home Equity, Home Loans, How can I use my home equity, How do I build my home equity?, interest rates, Mortgage Loans, pigeon forge real estate, Prime Mountain Properties, Terrell-Drager Team, The Terrell-Drager Team, What is home equity, Why build equity

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As a first-time homebuyer, I had little experience or knowledge in regards to realty. The staff was extremely helpful, and Emili Spangler in particular. She was very helpful and patient, especially given my inexperience. She often went above and beyond what was required, and was always proactive in making sure we stayed on track. A real pleasure to work with and the reason I’m now so happy to be able to say I’m finally a homeowner. My thanks to Emili and the rest of the staff!

Jon Boudreau

As Home Equity Rises, So Does Your Wealth

What does all of that mean for you?

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