Owning a home offers a variety of advantages. One of which is the chance to accumulate wealth over time through equity. We observed that over the previous year, home prices have moderated. Even so, a lot of homeowners still have a huge amount of equity. And according to CoreLogic,
“The total average equity per borrower has now reached almost $300,000, the highest in the data series.”
The recent Homeowner Equity Insights shows that the average homeowner’s equity has increased by $34,300 over the last 12 months. This demonstrates that you still have usable equity. That’s right. Despite the news stories, the typical homeowner still increased their equity. Due to a moderation in home prices, the gains aren’t as pronounced as they were before, but they are still substantial. Furthermore, there’s a good chance that you have more equity than you think.
Consequently, what does that mean for you? Your home’s value and equity are likely to have increased if you’ve lived there for at least a few years or longer. Your loan balance was also reduced during that time thanks to the mortgage payments you made. You might be able to benefit from the increase if the current value of your home is greater than the amount you still owe on your loan. It might be time to relocate to a bigger home if your current home is insufficient for your needs. Or it’s possible that you need something smaller because your space is too large. Whatever the circumstance, you can use your equity as a potent tool to aid in your market move. This is due to the fact that it might make up all or part of the down payment on your next home.
Equity can be beneficial, as explained by Rick Sharga, Executive VP of Market Intelligence at ATTOM Data:
“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure… We believe that this may be an indication that borrowers are leveraging their equity and selling their homes rather than risking the loss of their equity in a foreclosure auction.”
The Bottom Line
So, if you’ve been holding off on selling because you weren’t sure what the headlines meant for you, rest assured you’ve still gained equity in recent years. Get in touch with a local real estate expert to determine your equity. When deciding whether to buy or sell your home, having a clear understanding of your equity is essential. A knowledgeable expert can guide you through the challenging process of selling your home.
What To Do:
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