While keeping up with the stock market recently may have become rather difficult, determining the value of your property should provide much-needed comfort during this tumultuous period. If you own a property, the recent increase in housing prices has greatly increased your net worth. Your home equity played a part in the growth of your wealth.

Your home's equity is its current value less any loan balance.

Over the past several years, there was a big mismatch between the quantity of homes for sale and the number of people looking to buy, which led to a large increase in property prices. Home prices across the country are still high despite recent market cooling brought on by increased inventory and borrowing rates.

Why It's So Vital at This Time

The National Association of Realtors' (NAR) Chief Economist, Lawrence Yun, explains why this is important in the present:

“. . . the decline in the stock market has dented overall net wealth. It has fallen by $6 trillion from the first to the second quarter. Only housing wealth has held on, with homeowners’ real estate wealth (home value minus mortgage balance) rising by $1.2 trillion.”

Equity can assist you in achieving other objectives, such as purchasing your next house, in addition to helping you enhance your overall net worth. The equity you have built up in your present home is returned to you when you sell it, and it can be just what you need to pay for most or perhaps all of the down payment on your next home.

Although the stock market is now volatile, home equity is still going strong. Contact a reputable real estate advisor to learn the exact amount of equity you have in your existing house.

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