Monday, December 13, 2021 / by Flr Team
As Home Equity Rises, So Does Your Wealth
Homeownership is still a crucial part of the American dream. For those that own a home, and those that are looking to buy one, it’s 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 it’s 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 seller’s market. In today’s 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.
What does this mean for you?
If you’re already a homeowner, you likely have more equity in your home than you realize. That equity can take you places. You can use the equity you’ve gained to fuel your next move or achieve other life goals.
On the other hand, if you haven’t purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile investment. Homeowners across the nation gained an average of over $50,000 in equity this year! It’s the perfect chance to grow your net worth.
If you want to learn more, talk with one of our real estate professionals here at Florida Lifestyle Realty. 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.
Florida Lifestyle Realty