Homeowners Gained $28K in Equity over the Past Year

<article class="post-1107801 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1107801"><span class="entry-date">July 3, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Homeowners Gained $28K 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=Homeowners+Gained+%2428K+in+Equity+over+the+Past+Year&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhomeowners-gained-28k-in-equity-over-the-past-year%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Homeowners Gained $28K in Equity over the Past Year Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240703-Homeowners-Gained-28K-in-Equity-over-the-Past-Year-original.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>If you own a home, your net worth has probably gone up a lot over the past year. <a href="https://www.simplifyingthemarket.com/2024/06/12/home-prices-arent-declining-but-headlines-might-make-you-think-they-are/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">Home prices</a> have been rising, which means you’re building equity much faster than you might think. Here’s how it works.</p>
<p><strong>Equity is the current value of your home minus what you owe on the loan.</strong></p>
<p>Over the past year, there have still been more people wanting to buy than there are homes available for sale, and that’s pushed prices up. That rise in prices has translated directly into increasing equity for homeowners.</p>
<h4><strong>How Much Equity Have You Earned over the Past 12 Months?</strong></h4>
<p>According to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" rel="noopener noreferrer" target="_blank"><em>Homeowner Equity Insights</em></a> from <em>CoreLogic</em>, <strong>the average homeowner’s equity has grown by $28,000 in the last year alone</strong>.</p>
<p>That’s the national average, so if you want to see what’s happening in your state, check out the map below. It uses <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" rel="noopener noreferrer" target="_blank">data</a> from <em>CoreLogic</em> to show how much equity has grown in each state over the past year. You’ll notice every single state with sufficient data saw annual equity gains:<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240701/20240703-Homeowner-Equity-Gains-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240701/20240703-Homeowner-Equity-Gains-original.png"/></a></p>
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<h4><strong>What If You Bought Your House Before the Pandemic?</strong></h4>
<p>If you bought your house before the pandemic, the equity news is even better. According to <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from <em>Realtor.com</em>, home prices shot up by 37.5% from May 2019 to May 2024, meaning your home’s value has likely increased significantly. Ralph McLaughlin, Senior Economist at <em>Realtor.com</em>, <a href="https://www.realtor.com/news/trends/bought-home-pre-pandemic-how-much-its-worth-now/" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“Homeowners have seen extraordinary gains in home equity over the past five years.”</em></p></blockquote>
<p>To give context to how much equity can stack up over time, Selma Hepp, Chief Economist at <em>CoreLogic</em>, <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q1-2024/" rel="noopener noreferrer" target="_blank">explains</a> the total equity the typical homeowner has today:</p>
<blockquote><p><em>“With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, </em><strong><em>close to a total of $305,000 per owner</em></strong><em>.”</em></p></blockquote>
<h4><strong>How Your Rising Home Equity Can Help You</strong></h4>
<p>With how prices skyrocketed a few years ago, and the ongoing price growth today, homeowners clearly have substantial equity built up – and that has some serious benefits.</p>
<p>You could use it to start a business, fund an education, or even to help you afford your next home. When you <a href="https://www.simplifyingthemarket.com/2024/05/23/questions-you-may-have-about-selling-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">sell</a>, the equity you’ve built up comes back to you, and may be enough to cover a big part – or even all – of your next home’s down payment.</p>
<h3>Bottom Line</h3>
<p>If you’re <a href="https://www.simplifyingthemarket.com/2024/05/29/how-an-agent-helps-market-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">planning to move</a>, the equity you’ve gained can really help. Curious about how much you have and how you can use it to help pay for your next home? Connect with a local <a href="https://www.simplifyingthemarket.com/2024/06/10/selling-smart-why-a-real-estate-agent-makes-all-the-difference/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">real estate agent</a>.</p>
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