Homeownership is still a crucial part of the American dream. For a homeowner, it brings 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. The 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 the one we are in now. 

 The combination of low housing supply and high buyer demand in today’s real estate market is driving home values up and giving homeowners a significant equity boost.

According to the latest data from CoreLogic, the amount of equity homeowners have continues 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 looks like in your area, the map below shows the average equity gains by state.

What does all of that mean for you?

If you are 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 longer than a year, you’ll likely have even more equity than that.

Equity can take you places! You can take partial or lump-sum withdrawals out of your equity if you need to. You can use the equity for things like a home renovation, to fuel your next move, achieve other life goals, or decide to use it later in life.

On the other hand, if you haven’t purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile goal. Home equity is often an owner’s greatest asset. It pays to know how it works and how to use it wisely. 

Homeowners across the nation gained an average of over $50,000 in equity this year. If you would like to learn more, let’s connect!

We 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.