You’ve likely noticed a ton of headlines over the past few years saying that home prices are on the rise. But have you considered what that really means for your own home?

Home prices have increased significantly over the past five years — much more than what we typically see. If you’ve been considering selling, this might mean you could get a larger profit when you put your home on the market. So, what’s the actual change in your home’s value? Let’s take a closer look.

The Swift Growth of the Last Five Years

Home prices usually rise by around 2-5% each year. However, between 2021 and 2022, they jumped significantly, with some areas seeing increases of 20% or more. The main reason for this surge was simply that there were many more buyers than homes on the market, which drove prices up. Although the market has stabilized since then, you can still enjoy the advantages of those substantial price increases.

Your home has appreciated significantly more than usual in a short time, which translates to increased wealth for you as well.

The map below highlights data from the Federal Housing Finance Agency (FHFA), showing that home prices across the nation have increased by almost 60% in just the last five years. Here’s a more detailed look at those numbers broken down by state:

If you've been hesitant to sell because you're concerned about buying your next home with current rates and prices, consider this: it could be just what you need to close that affordability gap and move into your next house.

What if you've lived there for a longer time? Your home's value has likely increased even more. You get to add those unexpected gains from the past five years to the more typical appreciation you’ve seen over the years. An agent can help you understand what that means in real terms.

How to Determine the True Value of Your Home

A percentage can be helpful, but you're likely looking for more precise figures. To truly understand the value of your home, it's best to consult with a local real estate agent.

The map shows the average appreciation rates by state, but it won't reflect what's happening in your local market. For instance, is inventory still tight in your area? That could lead to quicker, higher prices. Plus, if you've made any renovations, that could further increase your home's value. These are the insights an agent can help you with.

An agent has a solid understanding of the local market and can combine that knowledge with data and the condition of your home to provide you with the most accurate value estimate. They possess the necessary data and expertise to determine what your home is truly worth in today’s market.

Bottom Line

Home values have increased, possibly even more than you anticipated. Want to know what your home is worth in today’s market? Let’s get in touch so you can find out.