How Much Equity Have You Gained Over the Years? Here's Why It Might Surprise You

Are you thinking about selling your home but unsure how to navigate today’s housing market? One factor that can make your decision easier is understanding the amount of equity you’ve built in your current home. Many homeowners are surprised to learn how much their property’s value has increased over time. Here are two major reasons why your equity may be higher than you think.

1. The Length of Time You've Owned Your Home

One of the biggest factors influencing your home equity is how long you’ve owned your property. From 1985 to 2009, the average homeowner stayed in their house for around six years. However, according to the National Association of Realtors (NAR), today’s average tenure has increased to about 10 years.

Why does this matter? The longer you own your home, the more equity you gain through mortgage payments and rising property values. If you’ve owned your home for 10 years or more, you could be sitting on a significant amount of equity.

2. The Rise in Home Prices Over Time

Another key factor contributing to your home equity is price appreciation. Over the past few decades, home prices have steadily increased, providing homeowners with significant returns. According to data from the Federal Housing Finance Agency (FHFA), home prices have risen nearly 60% for those who’ve owned their home for just five years, and they’ve more than tripled in value for homeowners who’ve held onto their properties for 30 years.

This means that if you’ve been considering downsizing, relocating, or moving closer to loved ones, your accumulated equity can help you comfortably afford your next home.

Bottom Line

Home equity can be a powerful tool when planning your next move. If you’re curious about how much equity you’ve gained and how it can help you buy your next home, let’s connect today.