Friday, September 23, 2022 / by Laura Larson
While keeping up with the fluctuations of the stock market may have become difficult, determining the value of your property should provide much-needed comfort during this tumultuous period. If you own a property, recent increases in housing prices have greatly increased your net worth. Your home equity played a part in the growth of your wealth. This is how it goes.
The National Association of Realtors (NAR) Chief Economist, Lawrence Yun, explains why this is important in the present: “...Overall net wealth has been impacted by the stock market collapse. The difference between the first and second quarters is $6 trillion. With homeowners' real estate wealth (home value minus mortgage balance) increasing by $1.2 trillion, only housing wealth has persisted."
Your home's equity is its current value less any loan balance. Over the past several years, there was a big mismatch between the number of homes for sale and the number of people looking to buy, which led to a large increase in property prices. Home prices across the country are still high despite recent market cooling brought on by increased inventory and mortgage interest rates.
That’s why, according to the latest Homeowner Equity Insights from CoreLogic, the average homeowner equity has grown by $60,000 over the last 12 months.
Why is this so important at this time?
Equity can assist you in achieving other objectives, such as purchasing your next house, in addition to helping you enhance your overall net worth. The equity you have built up in your present home is returned to you when you sell it, and it can be just what you need to pay for most or perhaps all of the down payment on your next home.
Although the stock market is highly volatile, home equity is still going strong. Contact Laura Larson right away to see exactly how much equity you have in your present house to make an informed decision about whether to sell or buy a home.