Homeowners Still Have Positive Equity Gains over the Past 12 Months
If you own a home, your net worth has increased significantly in recent years as a result of rapidly rising home prices. Even as the market cools, here's how it happened and what it means for you.
Equity is the current value of your home less the loan balance.
Home prices increased significantly over the last few years due to a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase.
And, while home price appreciation has slowed this year, and in some overheated markets, it doesn't mean you've lost all the equity you gained during the pandemic.
While that’s the national number, if you want to know what happened over the past year in your area, look at the map below from CoreLogic:
Why This Is So Important Right Now
While equity contributes to your overall net worth, it can also help you achieve other goals, such as purchasing your next home. When you sell your current home, the equity you've built up is returned to you, and it could be enough to cover a large portion - if not all - of the down payment on your next home.
So, if you've been putting off selling because you're not sure what the headlines meant for your bottom line, know that you've still gained equity in recent years, which can help fuel your move.
If you're thinking about making a move, the equity you've built up over time can be very useful. Connect with a trusted real estate advisor to determine how much equity you have in your current home and how you can use it to fund your next purchase.
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