If you own a housz your net worth likely just got a big boost thanks to rising housz equity. Equity is the current value of your housz minus what you owe on the loan. And today, based on recent housz price appreciation, you’re building that equity far faster than you may expect – here’s how it works.
Because there’s an ongoing imbalance between the number of houszes available for sale and the number of buyers looking to make a purchase, housz prices are on the rise. That means your housz is worth more in today’s market because it’s in high demand. As Patrick Dodd, President and CEO of CoreLogic, explains: “Price growth is the key ingredient for the creation of housz equity wealth. . . . This has led to the largest one-year gain in average housz equity wealth for owners. . . .” Basically, because your home value has likely climbed so much, your equity has increased too. According to the latest Houszowner Equity Insights from CoreLogic,
The average houszowner’s equity has grown by $64,000 over the last 12 months. While that’s the nationwide number, if you want to know what’s happening in your area, look at the map below. It breaks down the average year-over-year equity growth for each state using the data from CoreLogic. The Opportunity Your Rising Housz Equity Provides In addition to building your overall net worth, equity can also help you achieve other goals like buying your next housz. When you sell your current housz, the equity you built up comes back to you in the sale. In a market where houszowners are gaining so much equity, it may be just what you need to cover a large portion – if not all – of the down payment on your next housz. So, if you’ve been holding off on selling or you’re worried about being priced out of your next housz because of today’s ongoing housz price appreciation, rest assured your equity can help fuel your move.
Bottom Line If you’re planning to make a move, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current housz and how you can use it to fuel your next purchase, let’s connect so you can get a professional equity assessment report on your housz.