Homeowners Continue to Reap Recent Equity Gains
The past year, mortgage rates have been a widely discussed issue in the housing market. As of early 2022, rates had risen noticeably from where they were previously and now they are dropping again. This change is due to recent events in the economy.
In the past few years, homeowners have hit the jackpot with rapidly increasing home prices resulting in a substantial boost to their net worth. This has created an ideal situation for homeowners, particularly as the market moderates. Despite that moderating, homeowners are still reaping major benefits from their equity gains over the past year.
Equity is the current value of your home minus what you owe on the loan.
During the past few years, a huge gap between the number of homes on sale and buyers seeking to purchase caused home prices to skyrocket. Although this year has seen more moderation in price appreciation (or even depreciation in certain overheated markets), it doesn’t signify that all your pandemic-acquired equity is gone!
Homeowner Equity Insights from CoreLogic uncovered that the average homeowner has experienced an increase in equity of $34,300 over the past 12 months. It’s true – despite what you may have heard or read, most markets are still seeing positive gains in homeowners’ equity levels. While they’re not as dramatic as before due to home prices stabilizing, they remain noteworthy nonetheless. If you’ve owned your home for more than a year already then it is likely that your own personal gain exceeds those averages!
Why This Is So Important In this Moment
Equity is an effective way to not only add value to your net worth but also meet other objectives, like buying a new home. When you put your existing house up for sale, the equity that was built can be returned in the final selling price; it could even cover most of – if not all – of the down payment on your next property! If you’ve been hesitant about putting your home on the market due to uncertain financial news lately, rest assured knowing that you have gained equity over recent years and can use this towards relocating.
Are you considering relocating? If so, the equity that has been built up in your current home can be used to make a big difference. Let’s get together and figure out exactly how much equity is available to use towards purchasing your next abode.