Equity Gains for Today’s Homeowners
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 stats from the San Diego Association of Realtors shows a 44.29% increase in the last 5 years which translates to over $230,000.00.
Looking at California as a whole, the Federal Housing Finance Agency shows an average of 50.1% increase and a Nation wide average of 58.4%. Over the last 5 years.
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 a move, the equity you’ve gained over time 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.
Your questions, answered
What should I look for when renting a home?
Consider location, rent price, amenities, lease terms, and landlord responsiveness.
How do I know if I can afford a rental?
Follow the 30% rule: spend no more than 30% of your income on rent.
Is it better to rent a house or an apartment?
It depends on lifestyle needs — houses offer more space, while apartments often provide amenities.
