Owning a home can significantly boost your net worth, especially with the ongoing rise in home prices. According to Dee McDonough, owner of S&D Real Estate, "If you own a home, your net worth has probably gone up a lot over the past year. Home prices have been rising, which means you're building equity much faster than you might think. Here’s how it works."

What is Home Equity?

Equity is the current value of your home minus what you owe on the loan. Over the past year, the demand for homes has exceeded the supply, pushing prices up and, in turn, increasing homeowners' equity.

How Much Equity Have You Earned Over the Past 12 Months?

According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner's equity has grown by $28,000 in the last year alone. That’s a significant increase, reflecting the overall trend of rising home values across the nation. Check out the map below, which uses data from CoreLogic to show how much equity has grown in each state over the past year. Every state with sufficient data saw annual equity gains.

What If You Bought Your House Before the Pandemic?

If you purchased your home before the pandemic, the equity news is even better. Data from Realtor.com indicates that home prices shot up by 37.5% from May 2019 to May 2024. This substantial increase means your home's value has likely risen significantly. Ralph McLaughlin, Senior Economist at Realtor.com, says, “Homeowners have seen extraordinary gains in home equity over the past five years.”

Selma Hepp, Chief Economist at CoreLogic, adds, “With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, close to a total of $305,000 per owner.” This context shows how equity can accumulate over time, leading to substantial financial benefits.

How Your Rising Home Equity Can Help You

The equity you’ve built up can be used in various ways. Whether you want to start a business, fund education, or help afford your next home, substantial equity offers serious advantages. When you sell, the equity comes back to you, potentially covering a large part or even all of your next home’s down payment.

 S&D Real Estate: Your Partner in Building Wealth

 At S&D Real Estate, we are dedicated to helping you navigate the complexities of the real estate market to maximize your financial growth. Our services include:

- Buying and Selling Homes: Whether you’re looking to buy your first home or sell your current property, our expert agents provide personalized service to ensure you get the best deal possible.

- Home Valuation: Our team uses the latest market data to accurately assess your home's value, helping you understand your equity position and make informed decisions.

- Investment Opportunities: We offer guidance on lucrative real estate investment opportunities, helping you grow your wealth through smart property investments.

- Market Insights: Stay informed with our up-to-date market analysis and reports, ensuring you have the knowledge you need to make confident real estate decisions.

If you're planning to move, the equity you've gained can really help. Curious about how much you have and how you can use it to help pay for your next home? Let's connect. Contact S&D Real Estate today to explore your options and make the most of your home equity.

*The information contained, and the opinions expressed, in this article are not intended to be construed as financial advice. Always consult with a professional before making any financial decisions.