Thursday, March 24, 2022 / by Katy Foster
If you’re a current homeowner, your net worth just got a big boost in home equity. Equity is the current value of your home minus what you owe on the loan. And great news for you, equity today is building faster than you may expect.
Home values are still on the rise due to low housing supply and high buyer demand. Basically there aren’t enough homes available for buyers, so bidding wars are driving the prices up. That means your home is worth more in today’s market, and as home values climb, so does your equity.
Dr. Frank Nothaft, Chief Economist at CoreLogic states that home prices rose 18% during 2021, the largest annual gain recorded in its 45-year history. This is generating a big increase in home equity wealth. According to a Corelogic report, the average homeowner’s equity has grown by $55,300 over the last twelve months, with Florida alone averaging a $76,000 growth in equity!
How does this impact you? In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home. When you sell your home, the equity you built up comes back to you in the sale. And in a market where you’re gaining so much equity, it’s a great way to cover a good portion of the down payment on your next home.
Equity can be a real game-changer if you’re planning to make a move. So if you’ve been holding off on selling your home and worried about being priced out of your next home because of today’s rising home prices, you can gain peace of mind knowing that equity can help in making your next move.
To find out how much equity you have in your home, and how you can use it towards your next purchase, give us a call to connect with a trusted Real Estate professional.
Florida Lifestyle Realty