Using Your Equity to Make a Move

According to the latest data from CoreLogic, the average homeowner gained $51,500 in equity over the past year, and that number continues to grow as home values appreciate.

Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. The best thing about equity is that it often grows without you even realizing it, especially as home values rise like they’re doing today. As mentioned, the current combination of low housing supply and high buyer demand is driving home values up, which gives you a significant equity boost.

When you sell your house, that equity can be used to help you meet your goals. If you’re looking to move, you can use the equity from your current home to fuel a move into the home of your dreams.

Alternatively, you can use your equity to reach other big goals in your life, such as starting your own business or funding an education.

The graph below is a great example of how price appreciation converts into equity when you own a home. If you purchased a $350,000 home in January 2021, based on projected home price appreciation, you could potentially gain $111,285 in equity over the next five years – just by being a homeowner.

So, if you’re thinking of moving, don’t forget – you may have more equity in your current house than you realize, and that equity can take you places.

Bottom Line

Let’s connect to determine if your current home equity can help you make your next move sooner than you may have thought possible.