How Does Your Home’s Equity Grow
July 15, 2022
It is no secret that the rising levels of home appreciation have caused equity values to spike over the last year and a half. For the homeowners that have been in their home only a few years that is great! But what if you have been in your home for a good bit longer than that? You could be wondering how much equity you really have.
The National Association of Realtors, or the NAR, recently did a study to help homeowners get a better understanding of typical equity gains over lengths of time. This information they put together might just be enough to make you motivated to move. However let’s remember this is just an overview of typical gains and you will need to get a real estate professional to do an official assessment of your home to determine your precise equity.
So, how do you actually gain equity? Well for starters price appreciation is most definitely a factor. It can boost your normal equity gains, and you typically gain equity naturally over time as you pay down your home loan.
According to the study done by NAR this year, the average equity gain for someone who purchased their current home 5 years ago is about 155 thousand dollars of equity. For someone who purchased their home 10 years ago that average equity jumps to 240 thousand dollars and then for those homeowners who stay in their homes for 30 years the amount of equity can average somewhere around 359 thousand dollars.
These numbers are pretty impressive, right? However, let's take a moment to remember these numbers are by no means a guarantee. They are just simply a national average. There are many other factors that go into calculating your home's true equity gain. Some additional important factors to remember that affect this are: how long you've been in your home, the condition of your home, improvements or upgrades to your home over time, and more.
Here is the bottom line if you are thinking of selling your current home chances are you will have a surprising amount of equity right now based on price appreciation alone. Now is a great time for sellers to get the most out of their current home. So if that is you contact me today and let me get started working for you. I want to be YOUR realtor!