Studies have shown that, in many cases, the largest asset a family owns is the house they live in. Over the last twelve months, that asset has gained substantial value.
CoreLogic just released their 2019 3rd Quarter Homeowner Equity Insights Report. The report revealed that:
“U.S. homeowners with mortgages (roughly 64% of all properties) have seen their equity increase by a total of nearly $457 billion since the third quarter 2018, an increase of 5.1%, year over year.”
The equity in a property is determined by comparing the current value of the property against the outstanding mortgage debt. As prices rise, the equity in a home increases.
Current Property Value – Mortgage still owed = Home Equity
The report went on to explain that the average homeowner gain in equity over the last twelve months was $5,300.
Here’s a map showing the average equity gain by state. Look at Montana! $18,000 in homeowner equity over the last 12 months! That’s $12,700 more than the national average!Since the housing crash in 2008, many homeowners have felt trapped in their current houses, as they didn’t have enough equity to sell. The gains in equity over the past few years may have freed some homeowners who have a desire to move. Whether you’re growing out of your current home or wanting to downsize for a simpler life, your home equity could just give you the boost you need to find something more suitable to your current life.
If you’re already a homeowner, take a look at how much equity you have in your home. It might be worth thinking about using your equity and capitalizing on low interest rates to find a home more suited to your needs today.
If you’re still renting, you you’re missing out on huge financial gains year to year by not investing in your own home, but someone else’s.
Either way, connect with us to help you determine whether it makes financial and practical sense to make a move sooner rather than later. (406)651-5354