Watching the Stock Market? Check the Value of Your Home for Good News.

By
Real Estate Agent with HomeSmart 0561240

Watching the Stock Market? Check the Value of Your Home for Good News.

While watching the stock market recently may have started to feel pretty challenging, checking the value of your home should come as welcome relief in this volatile time. If you're a homeowner, your net worth got a big boost over the past few years thanks to rising home prices. And that increase in your wealth came in the form of home equity. Here's how it works.

Equity is the current value of your home minus what you owe on the loan. Because there was a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase over the past few years, home prices appreciated substantially. And while rising inventory and mortgage rates have cooled the market some in recent months, home prices nationally remain strong.

Thats why, according to the latest Homeowner Equity Insights from CoreLogic, the average homeowner equity has grown by 60,000 over the last 12 months. While that's the national number, if you want to know what happened, on average, over the past year in your area, look at the map below from CoreLogic:

Watching

Why This Is So Important Right Now

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), helps explain why this matters so much today:

. . . the decline in the stock market has dented overall net wealth. It has fallen by 6 trillion from the first to the second quarter. Only housing wealth has held on, with homeowners’ real estate wealth (home value minus mortgage balance) rising by 1.2 trillion.

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 house, the equity you 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.

Bottom Line

There's volatility in todays stock market, but home equity is still incredibly strong. To find out just how much equity you have in your current home, lets connect.

 

 

 

 

Posted by

e signature for Shayne Stone

“YOUR Rock-Solid Choice Realtor for Making Home Sellers a Profit & Home Buyers Equity”

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Comments (8)

Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I rarely enjoy watching the stock market, it's only fun when my money is increasing, haha.

Sep 29, 2022 06:33 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Happy Thursday. Great information and you can't look at it day to day, it would drive you bananas.  Thank you for the post and sell a house. Bill

 

Sep 29, 2022 06:37 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.    Thanks for sharing and enjoy your day!

Sep 29, 2022 07:06 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

The stock market is disappointing when watched daily but I don't believe in "playing" the market. I look for ten or more years out and I believe 10 years from now it will be back in a GREAT position once again.

Sep 29, 2022 07:46 AM
Tracy Lee Parker
RE/MAX DFW Associates - Royse City, TX
Buy*Sell*Rent

I invest but I am a moderate investor!  Building equity is the best. Thanks for the information! 

Sep 29, 2022 08:04 AM
Paddy Deighan MBA JD PhD
http://irstaxdebt.pro - Vail, CO
Paddy Deighan J.D. Ph.D

great perspective and observation....not a good plan to watch the stock market every day

Sep 30, 2022 01:48 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Sep 30, 2022 02:48 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Enjoyed your blog. Good information and I appreciate you sharing with us.  Have a good week!

Oct 05, 2022 05:23 PM