Mountain Rose Realty — Telluride, Colorado
Equity Gains for Today’s Homeowners — featured image

Equity Gains for Today’s Homeowners

By 2 min read
Buying a Home

Equity Gains for Today’s Homeowners | MyKCM

Today’s homeowners are sitting on significant equity, even as home price appreciation has eased recently. If you’re a homeowner, your net worth got a boost over the past few years thanks to rising home prices. Here’s what it means for you, even as the market moderates.

How Equity Has Grown in Recent Years 

Because of the imbalance between how many homes were for sale and the number of homebuyers in the market over the past few years, home prices appreciated substantially.

And while price appreciation has slowed this year, that doesn’t mean you’ve lost all the equity in your home. In fact, the latest Homeowner Equity Insights report from CoreLogic finds the average homeowner’s equity has grown by $34,300 over the past year alone.

And if you’ve been in your home longer than that, chances are you have even more equity than you realize.

While that’s the national number, if you want to know what happened in your area, look at the map below from the Federal Housing Finance Agency (FHFA). It shows on average how much home prices have risen over the past five years, which has been a major driver behind equity growth.

Equity Gains for Today’s Homeowners — photo 2

Why This Is So Important Right Now 

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’ve 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.

So, if you’ve been holding off on selling, it may be time to find out how much equity you have and how it can help fuel your next move.

Bottom Line

Homeownership is a long game and if you’re planning to make your next move, the equity you’ve gained can be a big boost. To find out how much equity you have in your current home and how to make the most of it for your next purchase, contact Anne-Britt of Mountain Rose Realty from Telluride, Colorado. With her deep knowledge of this magical mountain town, she'll work with you to develop an efficient and effective plan for making the transition from one home to the next. With years of experience behind her, Anne-Britt will help you maximize your equity so that you can focus on enjoying the adventure ahead.

Frequently Asked Questions

How much equity have homeowners gained on average over the past year?
According to CoreLogic's Homeowner Equity Insights report, the average homeowner's equity has grown by $34,300 over the past year alone, even as home price appreciation has slowed recently.
How can I use my home equity to buy my next home?
When you sell your current home, the equity you've built up returns to you as proceeds from the sale, which can be used to cover a large portion or even all of the down payment on your next home.
What caused the significant equity growth in homes over the past few years?
The imbalance between the supply of homes for sale and the number of homebuyers in the market led to substantial home price appreciation, which has been the major driver behind equity growth for homeowners.
How can I find out how much equity I have in my home?
You can consult with a real estate advisor like Anne-Britt Ostlund of Mountain Rose Realty, who can help you determine your home's equity and develop a plan for using it toward your next purchase.