Do You Know How Much Your House Is Really Worth?

When’s the last time you checked the value of your home? Most people keep an eye on their investments, retirement accounts, or credit score but rarely on one of their biggest assets: their house. If you’ve owned your home for a few years or more, it’s likely been quietly building wealth for you in the background. Even with the market shifts we’ve seen recently, you might be surprised by how much value your home has gained.

What Home Equity Really Means

That built-up wealth in your home is called equity. It’s the difference between what your home is worth today and what you still owe on your mortgage.

For example, if your home is worth $500,000 and you still owe $200,000, that means you have $300,000 in equity. The average homeowner with a mortgage currently has about $302,000 in equity and that number continues to grow for many.

Why You Probably Have More Than You Think

There are two main reasons why homeowners today are sitting on near-record levels of equity.

1. Significant Home Price Growth

The Federal Housing Finance Agency (FHFA) reports that home prices have increased nearly 54% nationwide over the past five years. That means your home is likely worth much more than when you bought it. Even if prices have leveled off in some areas, most long-term homeowners still have a healthy equity cushion.

2. People Are Staying in Their Homes Longer

According to the National Association of Realtors (NAR), the average homeowner now stays in their home for about 10 years much longer than in the past. Over that time, consistent payments and steady appreciation can really add up. NAR found that, on average, homeowners have gained $201,600 in wealth from price appreciation alone over the past decade.

What You Can Do with That Equity

Your equity isn’t just a number, it’s an opportunity. Depending on your goals, it can help you move forward in several ways.

You could use it as a down payment toward your next home, or even purchase your next property with cash. You might choose to renovate your current home, adding the features or updates that fit your lifestyle while potentially increasing your property’s value even more. Or, you could use your equity to invest in your future whether that means starting a business, paying for education, or funding other goals.

Bottom Line

Your home may be worth more than you think and understanding your equity is the first step toward making the most of it. If you’re curious about your home’s current value, connect with Slater Realty Group and let’s see what your next move should be.

Source

Coldwell Banker Realty