Homeowners Have Incredible Equity To Leverage Right Now

 

Even though home prices have moderated over the last year, many homeowners still have an incredible amount of equity. But what is equity? In the simplest terms, equity is the difference between the market value of your home and the amount you owe on your mortgage. The National Association of Realtors (NAR) explains how your equity grows over time. “Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”

The equity you build up over the years can be used to your advantage when you sell your current house and buy your next home. If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, your equity can be a powerful tool you can use to help you make a move in today’s market. That’s because it may be some (if not all) of what you need for your down payment on your next home.

And how much equity you have may surprise you. As Selma Hepp, Chief Economist for CoreLogic, says, “While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”

If you’re looking to leverage your equity to boost your buying power in today’s market, having a trusted agent by your side makes a difference. DM me so we can estimate how much equity you have and plan how you can use it toward the purchase of your next home.
 
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