If you own a home, your net worth has most likely increased significantly as a result of rising home equity. Equity is the current value of your home minus what you owe on the loan. And, thanks to recent home price appreciation, you're accumulating equity much faster than you might expect – here's how it works.

Home prices are rising as a result of an ongoing imbalance between the number of available homes for sale and the number of buyers looking to make a purchase. That is because your home is in high demand, it is worth more in today's market. According to Patrick Dodd, President, and CEO of CoreLogic:

“Price growth is the key ingredient for the creation of home equity wealth. . . . This has led to the largest one-year gain in average home equity wealth for owners. . . .”

Basically, because your home value has likely climbed so much, your equity has increased too. According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $64,000 over the last 12 months. Here in the Conejo Valley, home prices have increased 20% since June of 2021. This means that the average homeowner's equity grew by over $228,000 since last year. Wow. It's a great time for home ownership.

While that is the nationwide number, the map below will show you what is going on in your area. Using CoreLogic data, it breaks down the average year-over-year equity growth for each state.

The Opportunity Your Rising Home Equity Provides

Equity can help you achieve other goals, such as purchasing your next home, in addition to increasing your overall net worth. When you sell your current home, the equity you've built up is returned to you. It may be just what you need to cover a large portion – if not all – of the down payment on your next home in a market where homeowners are gaining so much equity.

So, if you've been putting off selling or are concerned about being priced out of your next home due to today's ongoing home price appreciation, know that your equity can help fuel your move.

Bottom Line

If you’re planning to make a move, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect so you can get a professional equity assessment report on your house.