Have you considered how much wealth you've gained as a homeowner? As home values rise, so does your net worth, and if you’ve owned your home for a few years, you likely have significant equity.
What Is Home Equity?
Home equity is the difference between your home’s value and your remaining mortgage. With record equity levels, averaging $319,000 per homeowner, this growth is largely due to significant home price appreciation—up 57.4% nationwide over the past five years.
This means your home's value has likely increased significantly since you bought it, as homeowners now stay in their houses longer, averaging a decade (see graph below).
Unlocking the Value of Home Equity
The longer you’ve owned your home, the more you’ve likely benefited from rising property values, which directly boosts your equity. According to NAR, homeowners who’ve lived in their houses for 10+ years have gained an average of $201,600 in wealth through price appreciation alone.
The Power of Home Equity
Your home is likely one of your biggest financial assets, opening the door to exciting possibilities:
- Buying Your Next Home: Use your equity to cover a down payment or even purchase your next home outright.
- Home Improvements: Fund renovations like a new kitchen or home office, boosting both your home’s value and enjoyment.
- Starting a Business: Tap into your equity to launch a business, covering startup costs, equipment, or marketing.
Whether you’re planning to sell, upgrade, or explore other opportunities, your home equity is a valuable resource. Connect with a local real estate agent to learn how to leverage it to achieve your goals.
