Homeowners, your net worth likely saw a significant boost this past year due to rising home prices. This increase has led to substantial equity gains. Here’s a quick look at what’s happening:
What is Equity?
Equity is the difference between your home’s current value and what you owe on your mortgage.
Rising Home Prices
Demand has outstripped supply, driving home prices up and, in turn, increasing homeowner equity.
How Much Equity Have You Gained?
According to CoreLogic, the average homeowner’s equity grew by $28,000 over the past year. Check the map below for state-specific data.
Bought Before the Pandemic?
If you bought your home before the pandemic, you’re in an even better position. Realtor.com reports a 37.5% increase in home prices from May 2019 to May 2024, boosting your equity significantly.
Benefits of Rising Equity
You can use your increased equity to start a business, fund education, or help purchase your next home. When you sell, this equity can cover a significant portion, if not all, of your next down payment.
Bottom Line
Thinking of moving? The equity you’ve gained can be a valuable resource. Connect with a local real estate agent to explore how much equity you have and how to leverage it for your next home purchase.