While keeping up with the stock market may have become rather complex, determining the worth of your property should give a sense of stability during this tumultuous period. If you own a house or a piece of land, the recent increase in housing prices has dramatically increased your net worth. Your equity played a part in the growth of your wealth. This is how it goes.
Your home’s equity is currently worth less than any loan balance. Over the previous several years, there was a significant mismatch between the number of homes for sale and the number of people wanting to buy, which led to a substantial increase in property prices. Home prices throughout the country are still high despite recent market cooling brought on by increased inventory and borrowing rates.
Because of this, the average homeowner’s equity increased by $60,000 over the previous 12 months, according to CoreLogic’s most recent Homeowner Equity Insights.
Why It’s So Vital at This Time
The National Association of Realtors (NAR) Chief Economist, Lawrence Yun says:
“… the stock market’s collapse has reduced overall net worth. The difference between the first and second quarters is $6 trillion. Only housing wealth has persisted, with homeowners’ real estate wealth (home value less mortgage balance) increasing by $1.2 trillion.
Equity may help you in purchasing your next house, aside from increasing your overall net worth. The equity you gained in your current property is returned to you when you sell it, and it can be what you need to pay for most or perhaps all of the down payment on your new home.
Although the stock market is now volatile, home equity is still going strong. Contact a reputable real estate expert to learn the exact amount of equity you have in your existing house.