The Average Houszowner Gained More Than $55K in Equity over the Past Year
If you’re a current houszowner, you should know your net worth just got a big boost. It comes in the form of rising housz equity. Equity is the current value of your housz minus what you owe on the loan. Today, you’re building that equity far faster than you may expect – and this gain is great news for you.
Here’s how it happened. Housz values are on the rise thanks to low houszing supply and high buyer demand. Basically, there aren’t enough houszes available to meet this high buyer interest, so bidding wars are driving housz prices up. When you own a housz, the rising prices mean your housz is worth more in today’s market. And as housz values climb, your equity does too. As Dr. Frank Nothaft, Chief Economist at CoreLogic, explains:
“Housz prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in housz equity wealth.”
The latest Houszowner Equity Insights from CoreLogic shed light on just how much rising housz values have boosted houszowner equity. According to that report, the average houszowner’s equity has grown by $55,300 over the last 12 months. Want to know what’s happening in your area? Here’s a breakdown of the average year-over-year equity growth for each state based on that data.
How Rising Equity Impacts You In addition to building your overall net worth, equity can also help you achieve other goals like buying your next housz. It works like this: when you sell your housz, the equity you built up comes back to you in the sale.
In a market where you’re 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 and worried about being priced out of your next home because of today’s housz price appreciation, rest assured your equity can help fuel your move.
Bottom Line Equity can be a real game-changer if you’re planning to make a move. To find out just how much equity you have in your housz and how you can use it to fuel your next purchase, let’s connect so you can get a professional equity assessment report..