Why Equity Is Growing Today For a homeowner, your equity is the current value of your home minus what you owe on the loan. Today, there aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving home values up, giving current homeowners a significant equity boost. The graph below uses the most recent projections from the Home Price Expectation Survey (HPES) by Pulsenomics to show how your household wealth is expected to continue building as home values rise.
Potential Home Price Growth Over the Next 5 Years Based on Projections from the Home Price Expectation Survey
$456,342
$426,083 $440,613
$411,000
Potential growth in household wealth over the next five years based solely on increased home equity if you purchased a $360K home in January of 2022. $96,342
$392,400
$360,000
2022 2023 2024 2025 2026 2027
Source: HPES 2022 1Q
How Rising Equity Impacts You If you’re a homeowner, equity not only builds your wealth, it also opens doors for you to achieve your financial goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.
Bottom Line Let’s connect to determine how much equity you have in your current home and how you can use it to help you make your next move sooner than you may have thought possible.
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