If you’re a houszowner, your net worth got a big boost over the past few years thanks to rapidly rising housz prices. Here’s how it happened and what it means for you, even as the market moderates.
Equity is the current value of your housz minus what you owe on the loan. Because there was a significant imbalance between the number of houszes available for sale and the number of buyers looking to make a purchase over the past few years, housz prices appreciated substantially.
And while housz price appreciation has moderated this year, and even depreciated slightly in some overheated markets, that doesn’t mean you’ve lost all the equity you gained during the pandemic frenzy.
To prove you still have equity you can use, the latest Houszowner Equity Insights from CoreLogic finds the average houszowner equity has actually grown by $34,300 over the past 12 months. That’s right, despite the headlines, the average houszowner still gained positive equity over the last year in just about every market. While the gains aren’t as dramatic as they were in the previous quarter due to home price moderation, they’re still significant. And if you’ve been in your home for longer than a year, chances are you have even more equity than you realize.
While that’s the national number, if you want to know what happened over the past year in your area, look at the map below from CoreLogic:
Why This Is So Important Right Now While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you sell your current housz, the equity you’ve built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home. So, if you’ve been holding off on selling because you weren’t sure what the headlines meant for your bottom line, rest assured you’ve still gained equity in recent years, and it can help fuel your move.
Bottom Line If you’re planning to make a move, the equity you’ve gained over time 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.