As Home Equity Rises, So Does Your Wealth

By
Real Estate Agent with Champion Real Estate Group 0561240

Homeownership is still a crucial part of the American dream. For those people who own a home (and those looking to buy one), its clear that being a homeowner has considerable benefits both emotionally and financially. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your wealth comes in the form of equity.

Equity is the difference between what you owe on the home and its market value based on factors like price appreciation.

The best thing about equity is that it often grows without you even realizing it, especially in a sellers market like were in now. In todays real estate market, the combination of low housing supply and high buyer demand is driving home values up. This is giving homeowners a significant equity boost.

According to the latest data from CoreLogic, the amount of equity homeowners have has continued to grow as home values appreciate. Here are some key takeaways from the Homeowner Equity Insights Report:

  • The average homeowner gained 51,500 in equity over the past year
  • There was a 29.3% increase in national homeowner equity year over year

To give you an idea of what that looks like in your area, the map below shows the average equity gains by state.As

What does all of that mean for you?

If you're already a homeowner, you likely have more equity in your house than you realize. The numbers in the map above reflect year-over-year growth. If you've been in your home for longer than a year, you'll likely have even more equity than that. That equity can take you places. You can use the equity you've gained to fuel your next move, achieve other life goals, and more.

On the other hand, if you haven't purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile goal. Homeowners across the nation gained an average of over 50,000 in equity this year. Don't miss out on this chance to grow your net worth.

Bottom Line

If you want to learn more, let’s connect. A trusted advisor can help you understand where home prices are today, how they contribute to a homeowners net worth, and the impact equity can have when you own a home.

 

 

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Comments (3)

Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

Home ownership still is the best investment currenly.  Make it a great Sunday, relax and recharge.  It all starts again tomorrow.  Have a fantastic week, and thanks again for the share.  Bill Salvatore

Oct 03, 2021 05:54 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Shayne and great information to share with everyone nation wide.  Can I reblog this in a couple of weeks.

 

Oct 03, 2021 09:23 AM
Shayne Stone

Thanks, Will. As always your welcome to share any of my post. By the way how's the back doing?

Oct 03, 2021 12:34 PM
Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and enjoy your day!

Oct 12, 2021 07:43 AM