The Surprising Amount of Home Equity You’ve Gained over the Years

    

As you consider selling your home, one question might be weighing heavily on your mind: “How will I navigate today’s housing market, especially with rising affordability concerns?” If you find yourself uncertain about how to proceed, there’s one key factor that might make your decision easier—your home equity.

Home equity is the value of your home minus what you still owe on your mortgage, and it can be a game-changer when it comes to making your next move. Whether you're thinking about downsizing, relocating, or just moving closer to loved ones, the equity you've built could help open the door to new opportunities. Let’s break down two important factors that impact your equity.

1. How Long You’ve Been in Your Home

One of the biggest contributors to home equity is how long you’ve owned your house. This is called homeowner tenure, and it’s been steadily increasing over the years.

From 1985 to 2009, the average homeowner stayed in their home for around six years. But that number has risen—today, homeowners are staying in their homes for an average of 10 years, according to the National Association of Realtors (NAR).

So, why does this matter? The longer you own your home, the more time you’ve had to pay down your mortgage and the more opportunities you’ve had to benefit from rising home prices. And that can result in significant equity gains.

If you’ve lived in your house for a decade or longer, you could be sitting on a substantial amount of equity, which can make all the difference when you're thinking about selling. It could be enough to fund your next home purchase, pay for renovations, or help you relocate to your dream location.

2. How Home Prices Appreciate Over Time

Home price appreciation also plays a big role in how much equity you’ve built. Simply put, as home prices rise, so does the value of your property.

According to data from the Federal Housing Finance Agency (FHFA), the average homeowner who’s been in their home for five years has seen its value increase by nearly 60%. And if you’ve owned your home for 30 years, its value has likely more than tripled in that time.

This means that not only have you been paying down your mortgage, but your home’s market value has been climbing as well, adding to your overall equity. Whether you’re looking to upgrade, downsize, or relocate, that equity can be a powerful tool to help you move forward.

The Bottom Line

Whether you’re thinking of selling to downsize, relocate, or move closer to family, understanding how much equity you’ve built up over time can ease your decision-making process. The equity you’ve earned could help you tackle affordability concerns, fund your next home, or simply give you peace of mind as you plan your next move.

Want to know how much equity you’ve built? Let’s connect and assess your home’s current market value. I’m here to help you navigate the next steps and elevate your home selling experience!

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