Homeownership is crucial to the American dream, offering emotional and financial benefits. For those who own a home or plan to buy one, it’s clear that home equity rises over time, increasing net worth. This steady growth in wealth makes buying a home one of the best ways to achieve long-term financial security.
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 we’re in now. In today’s real estate market, the combination of low housing supply and high buyer demand drives home values up. This is giving homeowners a significant equity boost.
According to the latest data from CoreLogic, the number of equity homeowners 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
The map below shows the average equity gains by state to give you an idea of what that looks like in your area.
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 with real estate professionals in Chicago at KM Realty Group LLC. A trusted advisor can help you understand where home prices are today, how they contribute to a homeowner’s net worth, and the impact equity can have when you own a home.
