The Surprising Amount of Home Equity You’ve Gained over the Years
Mike Doyle September 9, 2024
Mike Doyle September 9, 2024
There are a number of reasons you may be thinking about selling your house. And as you weigh your options, you may find you’re unsure how you’re going to deal with one thing about today’s housing market – and that’s affordability. If that’s your biggest concern, understanding how much equity you have in your house could help make your decision that much easier. Here are two key factors that have a big impact on your equity.
First up is homeowner tenure. That’s how long homeowners live in a house, on average, before selling or choosing to move. From 1985 to 2009, the average length of time homeowners stayed put was roughly six years.
But according to the National Association of Realtors (NAR), that number has been climbing. Now, the average tenure is 10 years (see graph below):
Here’s why that’s such a big deal. You gain equity as you pay down your home loan and as home prices climb. And when you combine all of your mortgage payments with how much prices have gone up over the span of 10 years, that adds up. So, if you’ve lived in your house for a while now, you may be sitting on a pile of equity.
To help show how much the price appreciation piece adds up, take a look at this data from the Federal Housing Finance Agency (FHFA) (see graph below):
Here’s what this means for you. While home prices vary by area, the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home for 30 years saw it more than triple in value in that time.
Whether you’re looking to downsize, relocate to a dream destination, or move so you can live closer to friends or loved ones, your equity can be a game changer.
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, let’s connect.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
Stay up to date on the latest real estate trends.
Have you ever stopped to think about how much wealth you’ve built up just from being a homeowner? As home values rise, so does your net worth. And, if you’ve been in y… Read more
Getting into short-term rentals (STRs) is exciting. You imagine guests falling in love with your space, five-star reviews rolling in, and a steady cash flow boosting y… Read more
If cash flow were already on its knees because of increased interest rates, soaring homeowners insurance premiums have been the real death blow.
You may be wondering if home prices are going to crash.
The newest Zillow Rental Market Report is out, and it’s showing ‘‘a softening of the rental market beyond regular seasonality.’’ Apparently, rental demand dipped doubl… Read more
With the 2024 Presidential election fast approaching, you might be wondering what impact, if any, it’s having on the housing market. Let’s break it down.
No one likes making mistakes, especially when they happen in what’s likely the biggest transaction of your life – buying a home.
Even though there are more homes available for sale than there were at this time last year, there are still more buyers than there are houses to choose from.
As you’re getting ready to sell your house, one of the first questions you’re probably asking is, “how long is this going to take?” And that makes sense—you want to kn… Read more
For expert real estate services, reach out to Mike Doyle. Whether you're buying, selling, or renting, navigate the process with confidence. Contact him today to ensure a smooth and informed real estate journey.
