Benefits to Growing Equity in Your Home

    Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace. One of the often overlooked benefits of rising home prices is the positive impact they have on home equity. Here are three ways this is a win for homeowners:

     

    • Move-Up Opportunity

    With the rise in home prices, homeowners naturally experience an increase in home equity. In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year. This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home.

     

    • Gain in Seller’s Profit

    ATTOM Data Solutions recently released their 2nd quarter 2019 Home Sales Report, indicating the seller’s profit jumped at one of the fastest rates since 2015. Looking at the amount paid when they bought their homes, and the amount they received after selling, we can see that some homeowners were able to walk away with a significant gain.

     

    • Out of a Negative Equity Situation

    Negative equity occurs when there is a decline in home value, an increase in mortgage debt, or both. Many families experienced these challenges over the last decade. However, many families have moved beyond a negative equity situation, and no longer owe more on their mortgage than the value of their home.

     

    If you are a current homeowner, you may have more equity than you realize. Your equity can open the door o future opportunities, such as moving up to your dream home.

     

     

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