What’s Your House Worth Now? The Answer May Surprise You.
Let’s talk about something you probably don’t check nearly as often as your bank account—but should: the value of your home.
It’s easy to overlook, but understanding how much your home is worth plays a significant role in your overall financial picture. When’s the last time you had a professional provide you with a current valuation of your home? If it’s been a while, you might be in for a pleasant surprise.
Your Home Is Likely Your Largest Asset
For most people, their home represents their biggest financial asset. And if you’ve owned your property for several years or more, it’s likely been quietly building wealth for you in the form of home equity.
What Is Home Equity?
Home equity is the difference between what your home is worth today and what you still owe on your mortgage. It increases over time as property values rise and you continue to pay down your loan.
Let’s say your home is now worth $500,000 and you owe $200,000 on your mortgage. That gives you $300,000 in equity. And you wouldn’t be alone—according to Cotality (formerly CoreLogic), the average homeowner with a mortgage is currently sitting on about $311,000 in equity.
Why You Probably Have More Equity Than You Think
There are two major reasons many homeowners today are enjoying record-high equity:
1. Home Prices Have Grown Significantly.
Over the past five years, home prices across the U.S. have increased by more than 57%, according to the Federal Housing Finance Agency (FHFA). If you purchased your home a few years ago, there’s a good chance it’s worth substantially more today.
2. Homeowners Are Staying Put Longer.
The National Association of Realtors (NAR) reports that the average homeowner now stays in their home for around 10 years. That’s a full decade of steady mortgage payments and appreciating home values. In fact, NAR estimates that over that time, the typical homeowner has accumulated $201,600 in wealth from price appreciation alone.
What Can You Do with That Equity?
Your equity isn’t just a number—it’s a powerful tool that could help you take your next step forward:
- Upgrade to Your Dream Home. Use your equity to cover the down payment—or even buy your next home outright with cash.
- Renovate Your Current Space. Invest in strategic improvements that enhance your lifestyle and may increase your home’s resale value.
- Fund a Business or Passion Project. Whether it’s opening your own business, investing in education, or expanding your portfolio, your equity could be the key to unlocking new financial opportunities.
The Bottom Line
Chances are, your home is worth more than you think—and that value could be your next big move. Whether you’re considering a sale, a renovation, or simply want to know where you stand, understanding your home equity gives you options and opens doors. At High Falls | Sotheby’s International Realty, we can give you a comprehensive home value report. Let’s talk about how to turn your home’s value into your future advantage.
What would you do with your equity? We are here to help you find out—together.