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The Average Homeowner Gained $56,700 in Equity over the Past Year

The Average Homeowner Gained $56,700 in Equity over the Past Year

When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the non-financial benefits, like the security or stability a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.

For a homeowner, your equity is the current value of your home minus what you owe on the loan. So, as home values climb, your equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.

Dr. Frank Nothaft, Chief Economist at CoreLogic, explains it like this:

Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.

To find out just how much rising home values have impacted equity, we turn to the latest Homeowner Equity Insights from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months.

Curious how your state stacks up? Check out the map below to find out the average equity gain for your area.

Map of Homeowner Equity Growth

How Rising Equity Impacts You

If you’re already a homeowner, equity not only builds your wealth, it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.

If you’re thinking about becoming a homeowner, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a financial one too.

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Barbara Carter

Barbara started her career as a real estate agent in 2007. She worked hard for her clients and soon became a top producer achieving may top producer awards from Ulster County Board of Realtors and Century 21. In 2017 she was named Realtor of the Year. Barbara is known for her kind, patient responsiveness by her clients. This consistent service to clients has been evident in her Five Star Professional awards from Forbes and Hudson Valley Magazine. Barbara formed a team in 2020. The Barbara Carter Team offers the best of residential, commercial and new construction representation and consultation in the Hudson Valley. Barbara Carter specializes in listing properties for sale. Working with her clients, Barbara helps homeowners understand the market value of their property. Professional listing photograghy is provided for her listings. Once on the market, Barbara will explain the process, use her keen negotiating skills to bring the best deal for her clients and then helps move the process smoothly to closing. The team office is located at 652 Route 299 Highland NY. We welcome visitors to stop by to get to know us and allow us to serve all your real estate needs. From home search homes for sale on our website.

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