Unlocking the Surprising Home Equity You’ve Built Over the Years

According to Keeping Current Matters, if you're thinking about selling your home but feeling uncertain due to affordability concerns in today's housing market, understanding the amount of home equity you've built over time can help simplify your decision-making process.

1. Homeownership Tenure: How Long You've Been in Your Home
The length of time you’ve owned your home plays a significant role in how much equity you’ve built. According to the National Association of Realtors (NAR), homeowner tenure has steadily increased over the years. In fact, from 1985 to 2009, homeowners typically stayed in their homes for about six years. Today, that number is much higher.

This matters because the longer you’ve stayed in your home, the more equity you’ve built through paying down your mortgage and benefiting from rising home values. If you’ve lived in your house for a decade or more, you could be sitting on a significant amount of equity.

2. How Home Prices Appreciate Over Time
Another key factor in your home’s value is price appreciation. Over the past five years, the typical homeowner has seen their home’s value rise by nearly 60%, according to data from the Federal Housing Finance Agency (FHFA). For those who have owned their homes for 30 years, the value has more than tripled.

This price appreciation can be a game changer, whether you’re looking to downsize, relocate, or move closer to loved ones. Home equity can provide the financial flexibility you need to make your next move.

Understanding your home equity could make your decision to sell easier and more profitable. Whether you’re planning to move or just curious about your property’s value, your equity could be the key to unlocking exciting new opportunities.

Source: Keeping Current Matters

Connect with Jason Buttorf if you want to find out how much equity you’ve built up over the years and how you can use it to buy your next home.