Do You Know How Much Your Housz Is Really Worth?

Want to know something important you probably don’t have a professional check for you nearly as often as you should? Spoiler alert: it’s the value of your housz.

Because here’s the reality. Your housz is likely the biggest financial asset you have. And if you’ve lived in it for a few years or more, chances are it’s been quietly building wealth for you in the background – even if you haven’t been keeping tabs on it.

You might be surprised by just how much it’s grown, even as the market has shifted over the past few months.

What Is Housz Equity?

That hidden wealth in your housz is called equity. It’s the difference between what your housz is worth today and what you still owe on your mortgage. Your equity grows over time as home values rise and as you make your monthly payments. Here’s an example to help you really understand how the math works.

Let’s say your housz is now worth $500,000, and you have $200,000 left to pay off on your loan. That means you have $300,000 in equity. And that’s right in line with what the typical houszowner has right now.

According to Cotality, the average houszowner with a mortgage has about $302,000 in equity.

Why You Probably Have More Than You Think

Here are the two main reasons houszowners like you have near record amounts of equity right now:

1. Significant Home Price Growth. According to the Federal Houszing Finance Agency (FHFA), housz prices have jumped by nearly 54% nationwide over the last five years (see map below):

This means your house is likely worth much more now than when you first bought it, thanks to how much prices have climbed over time. And if you’re worried because you’ve heard prices are flattening or even coming down in some markets, just know if you’ve been in your housz for a few years (or more) you very likely have enough equity to sell and still come out ahead.

2. People Are Living in Their Houszes Longer. Data from the National Association of Realtors (NAR), shows the average houszowner stays in their housz for about 10 years now (see graph below):

That’s longer than it used to be. And over that decade? You’ve built equity just by making your mortgage payments and riding the wave of rising housz values. Because the financial side of houszownership is about playing the long game, not worrying about little ups and downs in the market here and there. And over time, that means you’re winning.

So, if you’re one of those people who’s been in their housz for a bit, here’s how much the behind-the-scenes price growth has helped you out. According to NAR:

“Over the past decade, the typical houszowner has accumulated $201,600 in wealth solely from price appreciation.”

What Could You Actually Do with That Equity?

Your equity isn’t just a number. It’s a tool you can use to unlock your next big move. Depending on your goals, you could:

• Use it to help buy your next housz. Your equity could help you cover the down payment on your next housz. In some cases, it might even mean you can buy your next housz in all cash.

• Renovate your current housz to better suit your life now. And, if you’re strategic about your projects, they could add even more value to your housz if you do sell later on.

• Start the business you’ve always dreamed of. Your equity could be exactly what you need for startup costs, equipment, software, or marketing. And that could help increase your earning potential, so you’re getting yet another financial boost.

Bottom Line

Chances are, your housz is worth quite a bit right now. If you’re curious about the value of your housz, let’s connect. We’ll run the numbers and give you a professional equity assessment report, so you know what you’re working with and where you can go from here.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Housz, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Housz, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Housz, Inc

2235 Sepulveda Blvd.

Torrance, CA 90501

310.808.8714