The Average Homeowner Gained $56,700 in Equity over the Past Year

<article class="post-124740 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-124740"><span class="entry-date">December 21, 2021</span><div class="entry-header center-block text-center"><h1 class="entry-title">The Average Homeowner Gained $56,700 in Equity over the Past Year</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=The+Average+Homeowner+Gained+%2456%2C700+in+Equity+over+the+Past+Year&url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fthe-average-homeowner-gained-56700-in-equity-over-the-past-year%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="The Average Homeowner Gained over $56,700 in Equity over the Past Year | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/20120230/20211221-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/20120230/20211221-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/20120230/20211221-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the <a href="https://www.simplifyingthemarket.com/2021/11/30/home-is-where-the-heart-is-more-than-ever-this-year/?a=712984-fa409495d5d70154d03a25e81e9540e2">non-financial benefits</a>, like the security or stability a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.<span id="more-45715"></span></p>
<p><strong>For a homeowner, your equity is the current value of your home minus what you owe on the loan.</strong> So, as <a href="https://www.simplifyingthemarket.com/2021/11/10/whats-happening-with-home-prices/?a=712984-fa409495d5d70154d03a25e81e9540e2">home values climb</a>, your equity does too. That’s exactly what’s happening today. There <a href="https://www.simplifyingthemarket.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/?a=712984-fa409495d5d70154d03a25e81e9540e2">aren’t enough homes</a> on the market to meet buyer demand, so bidding wars and multiple offers are driving <a href="https://www.simplifyingthemarket.com/2021/08/16/a-look-at-home-price-appreciation-and-what-it-means-for-sellers/?a=712984-fa409495d5d70154d03a25e81e9540e2">prices</a> up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.</p>
<p>Dr. Frank Nothaft, Chief Economist at <em>CoreLogic, </em><a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/">explains</a> it like this:</p>
<blockquote>
<p><em>“<strong>Home price growth is the principal driver of home equity creation. </strong>The CoreLogic Home Price Index reported <strong>home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.</strong>”</em></p>
</blockquote>
<p>To find out just how much rising home values have impacted equity, we turn to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/"><em>Homeowner Equity Insights</em></a> from <em>CoreLogic.</em> According to that report, <strong>the average homeowner’s equity has grown by $56,700 over the last 12 months.</strong></p>
<p>Curious how your state stacks up? Check out the map below to find out the average equity gain for your area.<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/20170213/20211221-MEM-Eng.png"><img alt="The Average Homeowner Gained over $56,700 in Equity over the Past Year | Simplifying The Market" class="aligncenter wp-image-45731" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/20170213/20211221-MEM-Eng.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/20170213/20211221-MEM-Eng.png 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/20170213/20211221-MEM-Eng-400×300.png 400w" width="650"/></a></p>
<h4><strong>How Rising Equity Impacts You<br/></strong></h4>
<p>If you’re already a homeowner, equity not only builds your wealth, it also <a href="https://www.simplifyingthemarket.com/2021/11/22/4-ways-homeowners-can-use-their-equity/?a=712984-fa409495d5d70154d03a25e81e9540e2">opens doors</a> for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have <a href="https://www.simplifyingthemarket.com/2021/12/06/win-when-you-sell-and-when-you-move/?a=712984-fa409495d5d70154d03a25e81e9540e2">changed</a> and you’re looking for something new.</p>
<p>If you’re thinking about becoming a homeowner, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a <a href="https://www.simplifyingthemarket.com/2021/10/07/111285-reasons-you-should-buy-a-home-this-year/?a=712984-fa409495d5d70154d03a25e81e9540e2">financial</a> one too.</p>
<h3><strong>Bottom Line</strong></h3>
<p>Whether you’re a current homeowner or you’re ready to become one, it’s important to know how equity works and why it matters. If this inspires you to make a move, let’s connect to explore your options and find out what steps you need to take next.</p>
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