You know what they say, homeownership builds wealth, and that couldn’t be closer to the truth. Over the past few years, homeowners have gained a significant amount of equity from rapid home price appreciation. Although this news is thrilling to both new homeowners and experienced homeowners alike, those who have been in their homes between 10 to 30 years may be wondering how much equity they truly have at this point.
A recent study conducted by the National Association of Realtors (NAR) shows that those who have lived in their home for 10 years or more, can expect to have gained about $240,000 in equity so far. For someone who’s been in their home for a while and is ready for a change, this data could be enough to motivate a move. Remember, the data provided by NAR is an estimate pulled from a study – it doesn’t determine how much equity you actually have in your home. If you’d like an “equity check” our team can give you a professional equity assessment.
Whether or not you’re interested in a move, knowing how much equity you have is always a good idea.
How Your Equity Builds Over Time
Home equity is the amount of home the owner actually possesses at any time and because equity depends on the market, it can fluctuate at any time. Home price appreciation is only one factor that boosts your equity. As you pay your monthly mortgage payment each month, your equity steadily increases as your home loan decreases.
Average Equity Growth over Time
The study from NAR breaks down the typical equity gain over time (see graph below). It calculates the equity a homeowner potentially gained if they purchased the median-priced home 5, 10, or 30 years ago and still own it today.
These six-figure numbers are impressive and certainly enough to help you fuel a move into your next home, but they’re not a promised amount. Your own equity depends on how long you’ve been in the house, your home’s condition, any upgrades you’ve made, your area, and much more.
Ready for an Equity Check?
Home equity can be a game-changer if you’re considering moving, especially if you’ve been in your current home for a while. If you’re curious about your home equity and want to chat about your individual situation, we’re here to help! For an equity check, fill out the form below or give us a call at 562.896.2456 and we can run an equity check for you.