Homeowner equity gains in the United States averaged $64,000 during the twelve-month period from April 1, 2021 through March 31, 2022 according to Core Logic. The gain is the largest one-year gain in history.
Equity is the current value of your home minus what you own on the loan so it is different from appreciation. Appreciation is the increase in value of the home in the last twelve months.
How does your state stack up?
That appreciation is certainly a contributor to most home owners as your net worth got a big boost in the last year.
Because of the supply vs demand numbers, home prices are still on the rise. Even as interest rates have doubled in the last 4 months, buyers that need to move are doing so.
If you are considering making a move, the equity you have gained can help your next home become more affordable. Upon the sale of your current home, that equity minus the closing costs, turn into cash to be used for a down payment on your next home.
Connect with your Realtor to find out how much equity you have in your local real estate market.