While keeping up with the stock market may have become rather complex, determining the worth of your property should provide much-needed comfort during this erratic period. If you own a house, the recent increase in housing prices has dramatically increased your net worth. Your property equity has significantly contributed to your wealth. This is how it goes.
Your home’s equity is its current worth less 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 considerable increase in property prices. Home prices throughout the country are still increasing despite recent market stability brought on by expanded inventory and borrowing mortgage 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 Important to You
The National Association of Realtors (NAR) Chief Economist, Lawrence Yun, explains why this is important in the present:
“… 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 to achieve your goals, such as purchasing your new house, in addition to helping you enhance your overall net worth. The equity you have gained in your current house 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.
To sum up
Although the stock market is now erratic, 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.
The Real Estate Edge 