The dream for most Americans is to one day own their own home. With the abundance of information at our fingertips thru the internet, we have the ability to research information unlike any previous time in history.. We are introduced to articles, blogs and social media posts that engage us and make learning more enjoyable. Social media, especially, has a way of targeting information for us based on our habits and natural curiosities. Ideas and strategies of how to make solid investments, how to create passive income streams, and the basics of gaining financial freedom are found everywhere. We have learned that making a home purchase, whether it is your first or one of many, can be an excellent way to solidify your wealth as your equity in your home rises. But what does that really mean?
Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. And the highlight about equity? Often times, it grows without you even realizing it, especially in such a strong seller's market like the one we are in right now. The combination of limited inventory and an increase of qualified buyers is driving home values up higher than ever! For current homeowners, this lends itself to a significant equity boost.
The amount of equity homeowners have has continued to rise as home values appreciate. According to the Homeowner Equity Insights Report and CoreLogic data:
- On average, homeowners in 2021 gained $51,500 in equity over the past 12 months
- Nationally, there was a 23.9% increase in homeowner equity
What does that really mean for you?
If you currently own your home, you likely have more equity in your home than you realize. The equity in your home can be used as a stepping stone to many more financially driven opportunities. You may have potential to purchase an investment property, perhaps a vacation home or to start a new business! You just need to know your numbers!
A real estate professional can be a wealth of information on determining the current value and equity you have in your home. They can explain and help you explore potential leverage opportunities for additional real estate investments which will continue to grow your wealth. Want to learn more? Call us today to find out what your home is really worth in today's market and the opportunities for growing your wealth through Real Estate!