How Much Home Equity Have You Gained? The Answer Might Surprise You

Have you ever considered how much wealth you’ve accumulated simply by owning your home? As property values increase, so does your net worth. If you’ve been in your home for a few years or more, there’s a good chance you’re sitting on a significant amount of equity — possibly more than you realize.

What Is Home Equity?

Home equity is the difference between your home’s current market value and what you owe on your mortgage. For example, if your house is worth $500,000 and your remaining mortgage balance is $200,000, you have $300,000 in equity. This represents the wealth you’ve built through homeownership.

Right now, homeowners across the country are enjoying record levels of equity. According to Intercontinental Exchange (ICE), the average homeowner with a mortgage has $319,000 in home equity.

Why Have Homeowners Gained So Much Equity?

Two primary factors have driven the remarkable growth in home equity:

1. Significant Home Price Growth

Home prices have seen dramatic increases in recent years. According to the Federal Housing Finance Agency (FHFA), home prices across the U.S. have risen by 57.4% over the past five years. This means your home is likely worth much more now than when you purchased it. Nevada shows 51.4% growth over 5 years in Q3 of 2024.

2. Longer Tenure in Homes

People are staying in their homes longer than ever before. The National Association of Realtors (NAR) reports that the average homeowner stays in their house for a decade.

This extended tenure means homeowners benefit even more from the compounding growth of home values. Over the past decade, the typical homeowner has gained $201,600 in wealth purely from home price appreciation, according to NAR.

The Benefits of Having Home Equity

Your home equity is more than just a number on paper — it’s a resource that can open doors to new possibilities:

• Moving to Your Next Home

Equity can significantly reduce the financial hurdles of buying your next home. It could cover the down payment or, in some cases, allow you to purchase your next property outright in cash.

• Financing Home Improvements

Thinking about renovating your kitchen, adding a home office, or making other upgrades? Your equity can fund these improvements, potentially increasing your home’s value and making it more enjoyable to live in.

• Starting a Business

If you’ve been dreaming of starting your own business, your home equity could be the key to turning that vision into reality. It can provide funding for startup costs, equipment, or marketing to help you get your business off the ground.

Your home equity is a powerful tool that can help you achieve your financial and personal goals. Whether you’re considering selling, upgrading, or simply exploring your options, understanding and leveraging your equity can be a game-changer. If you’d like to find out how much equity you’ve gained or discuss how to put it to work for you, let’s connect and explore the possibilities.

Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com

3007 W Horizon Ridge Pkwy, Ste. 210, Henderson, NV 89052