Homeownership is still a crucial part of the American dream. For those people who own a home (and those looking to buy one), it’s clear that being a homeowner has considerable benefits both emotionally and financially. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your wealth comes in the form of equity.
Equity is the difference between what you owe on the home and its market value based on factors like price appreciation.
The best thing about equity is that it often grows without you even realizing it, especially in a sellers’ market like we’re in now. In today’s real estate market, the combination of low housing supply and high buyer demand is driving home values up. This is giving homeowners a significant equity boost.
According to the latest data from CoreLogic, the amount of equity homeowners have has continued to grow as home values appreciate. Here are some key takeaways from the Homeowner Equity Insights Report:
The average homeowner gained $51,500 in equity over the past year
There was a 29.3% increase in national homeowner equity year over year
To give you an idea of what that looks like in your area, the map below shows the average equity gains by state.
What does all of that mean for you?
If you’re already a homeowner, you likely have more equity in your house than you realize. The numbers in the map above reflect year-over-year growth. If you’ve been in your home for longer than a year, you’ll likely have even more equity than that. That equity can take you places. You can use the equity you’ve gained to fuel your next move, achieve other life goals, and more.
On the other hand, if you haven’t purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile goal. Homeowners across the nation gained an average of over $50,000 in equity this year. Don’t miss out on this chance to grow your net worth.
Bottom Line
If you want to learn more, let’s connect. A trusted advisor can help you understand where home prices are today, how they contribute to a homeowner’s net worth, and the impact equity can have when you own a home.
Experts agree that the housing market is still strong this fall and gives both buyers and sellers unique opportunities. Let's connect if you’re ready to make a move this season.
The real estate market is starting to show signs of cooling overall but select states, such as Florida, are still hot. Nationally, selling prices are beginning to decline slightly by 0.2% and listings with price drops increased in July by 4.7%, the highest since early 2019. this does not necessarily mean pricing are dropping everywhere or that a reset is coming. This could simply be a result of overzealous real estate agents and owners trying to get more for the property than the market would bear.
Inventory or the available number of homes for sale is beginning to increase leading to a reduction in bidding wars and soaring prices. While the national average supply is now 6.3 months, many parts of the country are still experiencing inventory shortages. Central Florida is currently at 1-month of inventory with parts of the Orlando metro area at less than 1-month.
The average days on market or sometimes referred to DOM (Days on market) has increased nationally but is still only 16 days. Please reach out to us for more information.