Are you thinking about selling your house but worried about today’s housing market affordability? Understanding how much equity you’ve gained over the years could be the key to making an informed decision. Let’s dive into two crucial factors that significantly impact your home equity.
How Long You’ve Been in Your Home
First, let’s talk about homeowner tenure, which is the average length of time homeowners live in a house before selling or moving. From 1985 to 2009, homeowners typically stayed in their homes for about six years. However, according to the National Association of Realtors (NAR), that number has now climbed to an average of 10 years.
This extended tenure is significant because you accumulate equity as you pay down your home loan and as home prices appreciate. When you combine your mortgage payments with the increase in home prices over a decade, you might find yourself sitting on a substantial amount of equity.
How Home Prices Appreciate Over Time
To illustrate how much equity you could gain from price appreciation, let’s look at data from the Federal Housing Finance Agency (FHFA). Home prices can vary by region, but the typical homeowner who has lived in their house for five years has seen its value increase by nearly 60%. For those who have owned their home for 30 years, the value has likely more than tripled.
This means whether you’re considering downsizing, relocating to your dream destination, or moving closer to loved ones, your accumulated equity can be a significant financial asset.
Bottom Line
If you’re curious about how much equity you’ve built up and how it can be leveraged to purchase your next home, let’s connect. Understanding your equity can be a game changer in making your next move.
If I can help you or someone that you care about, please reach out to me directly!
Thanks for reading!
Brandon Yopp