Homeowners Gain $28K in Equity in a Year: How It Boosts Your Wealth

If you own a home, congratulations—you've likely seen a significant increase in your net worth over the past year. With rising home prices, homeowners are building equity at a faster rate than anticipated. Here’s a breakdown of what this means for you.

Understanding Equity Growth

Equity represents the current market value of your home minus any outstanding loan balance. As home prices across the nation continue to climb due to high demand and limited supply, homeowners benefit directly from increased equity.

Annual Equity Growth: $28,000 Average Increase

According to CoreLogic’s latest Homeowner Equity Insights, the average homeowner has gained approximately $28,000 in equity over the past twelve months. This national average reflects a robust trend of wealth accumulation through homeownership.

State-by-State Equity Gains

For a detailed view of equity growth specific to your state, refer to CoreLogic’s comprehensive map below. It illustrates how equity has appreciated across different regions, highlighting consistent gains nationwide.

Pre-Pandemic Homeowners Reap Even Greater Benefits

If you purchased your home before the pandemic, the news gets even better. Data from Realtor.com indicates that home prices surged by 37.5% from May 2019 to May 2024. This substantial appreciation means that homes bought earlier have likely seen significant increases in value.

Ralph McLaughlin, Senior Economist at Realtor.com, emphasizes:

“Homeowners have experienced remarkable gains in home equity over the past five years.”

Harnessing Your Home Equity

The substantial rise in home equity opens up various opportunities for homeowners. Whether you aim to start a business, invest in education, or facilitate the purchase of your next home, your accrued equity serves as a valuable financial asset. Upon selling your current home, the equity can potentially cover a substantial portion, if not the entirety, of your next home’s down payment.

Leveraging Equity for Future Plans

Considering a move? The equity you've accumulated can play a pivotal role in financing your next steps. Understanding how much equity you possess and exploring its potential uses can significantly aid in planning your next move.

Conclusion: Making the Most of Your Home Equity

As home values continue to soar, homeowners are reaping the rewards of their investments through increased equity. Whether you're looking to capitalize on these gains or simply curious about your current equity position, connecting with a real estate professional can provide invaluable insights.

Ready to leverage your home equity to achieve your financial goals? Let’s discuss how you can maximize your newfound wealth and make informed decisions regarding your homeownership journey. Reach out today to explore your options and harness the power of your home equity effectively.