The Average Homeowner Gained $64K in Equity over the Past Year

If you own a home, your net worth likely just got a big boost thanks to rising home equity.  Equity is the current value of your home minus what you owe on the loan.  Based on recent home price appreciation, you’re building that equity far faster than you may expect.  Here’s how it works.

Because there’s an imbalance between the number of homes available for sale and the number of buyers looking to make a purchase, home prices are on the rise.  That means your home is worth more in today’s market because it’s in high demand.  Price growth is the key ingredient for the creation of home equity wealth.  This has led to the largest one-year gain in average home equity wealth for owners.

Basically, because your home value has likely climbed so much, your equity has increased too.  According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $64,000 over the last 12 months. While that’s a nationwide number, the average home equity throughout the country has grown significantly.

The opportunity your rising home equity provides:  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 current house, the equity you built up comes back to you in the sale.  In a market where homeowners are gaining so much equity, it may be just what you need to cover a large portion – if not all of the down payment on your next home.  So, if you’ve been holding off on selling or you’re worried about being priced out of your next home because of today’s ongoing price appreciation, rest assured your equity can help fuel your move.

Bottom line:  If you’re planning to make a move, the equity you’ve gained can make a big impact.  To find out just how much equity you have in your current home and how you can use it to fuel you’re next purchase, contact Falvey Real Estate Group at 518.452.3912.