If you own a home, chances are your net worth has increased significantly in the past year. The rise in home prices is boosting your equity faster than you realize. Let's break it down.

Equity in your home is the difference between its current value and the amount you still owe on the loan.

Over the past year, we've seen a situation where the demand from potential homebuyers has continued to outweigh the supply of homes being listed for sale. This dynamic has led to an increase in housing prices, thereby resulting in homeowners building more equity in their properties.

How Much Equity Have You Earned over the Past 12 Months?

According to the most recent Homeowner Equity Insights report from CoreLogic, the average homeowner has seen their equity increase by $28,000 in just the past year.

To view the equity growth in your state over the past year, refer to the map below based on CoreLogic data. Every state with adequate data experienced annual equity gains.

What If You Bought Your House Before the Pandemic?

If you purchased your house before the pandemic, here's some good news about your home equity. Recent figures from Realtor.com show that home prices rose by 37.5% between May 2019 and May 2024. This increase indicates that the value of your home has probably gone up significantly. According to Ralph McLaughlin, a Senior Economist at Realtor.com:

“Homeowners have seen extraordinary gains in home equity over the past five years.”
— Realtor.com

Selma Hepp, Chief Economist at CoreLogic, illustrates the cumulative equity that the average homeowner currently holds.

“With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, close to a total of $305,000 per owner.”
— Selma Hepp, Chief Economist at CoreLogic

How Your Rising Home Equity Can Help You

With the significant rise in prices a few years back and the continuous price appreciation today, homeowners have undeniably accumulated considerable equity - which comes with various advantageous implications.

When you sell, the equity you've accumulated comes back to you. This money could be used to kickstart a new business, support your education, or contribute towards the down payment for your next home.

Bottom Line

Considering a move and wondering how the equity you've built up can support you? Let's discuss how much you have and explore ways it can assist with your next home purchase. Feel free to reach out to connect further.