How Much Is Your Home Really Worth Today?
When was the last time you had a professional check the value of your home? For most people, it’s been a while. Yet your home is likely the biggest financial asset you own—and its value may have been quietly climbing in the background without you realizing it.
Even with today’s market shifts, many homeowners are sitting on a surprising amount of equity.
What Is Home Equity?
Equity is the portion of your home you truly own. It’s the difference between your home’s current market value and what you still owe on your mortgage. Over time, your equity grows as home values rise and as you pay down your loan.
Here’s a quick example: if your home is worth $500,000 and your remaining mortgage balance is $200,000, you have $300,000 in equity. That’s right in line with the national average. According to CoreLogic, the typical U.S. homeowner with a mortgage has about $302,000 in equity.
Why You May Have More Equity Than You Think
Two key factors are driving today’s record levels of home equity:
1. Home Price Growth
According to the Federal Housing Finance Agency (FHFA), home prices have increased nearly 54% nationwide over the past five years (see map below):
Even if prices have cooled slightly in some markets, long-term owners are still in a strong position. If you’ve owned your home for several years, chances are you’ve built enough equity to sell and still come out ahead.
According to the Federal Housing Finance Agency (FHFA), home prices have increased nearly 54% nationwide over the past five years (see map below):
Even if prices have cooled slightly in some markets, long-term owners are still in a strong position. If you’ve owned your home for several years, chances are you’ve built enough equity to sell and still come out ahead.2. Longer Homeownership Tenure
The National Association of Realtors (NAR) reports that the average homeowner now stays in their home about 10 years (see graph below):
That’s longer than in the past—and it means more time to pay down your mortgage and benefit from rising property values.
The National Association of Realtors (NAR) reports that the average homeowner now stays in their home about 10 years (see graph below):
That’s longer than in the past—and it means more time to pay down your mortgage and benefit from rising property values.As NAR explains:
“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
What You Can Do with Your Equity
Equity isn’t just a number on paper. It’s a resource you can use to move closer to your financial and lifestyle goals. For example, you could:
- Put it toward the down payment on your next home—or even pay all cash.
- Invest in home improvements that make your space fit your needs and could boost resale value.
- Fund a business or project you’ve always wanted to pursue.
Bottom Line
Your home may be worth more than you think. If you’re curious about how much equity you’ve built and what that could mean for your next move, let’s connect. I’ll prepare a professional equity assessment so you know exactly where you stand.
