Homeowners Gained $28K in Equity over the Past Year

Your Home's Rising Equity: What It Means for You

As a homeowner, you might have noticed a pleasant surprise over the past year: your net worth has likely increased. This is largely due to the rise in home prices, which has significantly boosted your home equity. But what exactly does this mean for you? Let’s break it down.

Understanding Home Equity

Equity is simply the current value of your home minus what you owe on your mortgage. Over the past year, we've seen a strong demand for homes, but not enough supply. This imbalance has pushed home prices up, and as a result, your equity has grown faster than you might have anticipated.

How Much Equity Have You Gained?

According to CoreLogic’s latest Homeowner Equity Insights, the average homeowner has gained about $28,000 in equity over the last year alone. That's a substantial increase in your financial cushion, and it's a national average—your specific state might have even higher gains.

Equity Growth by State

Each state has experienced varying levels of equity growth, but the trend is clear: homeowners across the country are seeing significant increases. Check out the data from CoreLogic to see how much equity has grown in your state. It's exciting to see these numbers rising, as it directly translates to more value in your investment.

Bought Your Home Before the Pandemic? Even Better!

If you purchased your home before the pandemic, your equity growth is even more impressive. Realtor.com reports that home prices have jumped by 37.5% from May 2019 to May 2024. This means your home's value has likely soared, giving you an even larger equity boost. Ralph McLaughlin, Senior Economist at Realtor.com, confirms that homeowners have seen extraordinary gains in home equity over the past five years.

The Big Picture: Your Total Equity

Selma Hepp, Chief Economist at CoreLogic, shares that homeowners today are approaching historic equity peaks, with the typical homeowner having close to $305,000 in equity. This is a significant financial resource that can open up many opportunities for you.

How Can You Use Your Rising Home Equity?

With such substantial equity, you have several options to consider:

  • Start a Business: Use your equity as seed money to launch a new business venture.
  • Fund Education: Invest in education for yourself or your family.
  • Buy Your Next Home: When you sell your current home, the equity you've built up can help cover a significant portion—or even all—of your next home’s down payment.

Bottom Line

If you’re thinking about moving, the equity you’ve gained can be a game-changer. Curious about how much equity you have and how it can help you with your next home purchase? Let’s connect. I can provide you with the insights and guidance you need to make the most of your home’s equity.

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