Have You Checked Your Home Value Lately?
When’s the last time you looked at how much your home is worth? We check our bank accounts all the time, but for most people, their house is the single biggest asset they own. And if you’ve had your home for a few years (or longer), chances are it’s been quietly building wealth for you in the background.
And honestly? You might be surprised by just how much.
What Is Home Equity?
That hidden wealth shows up as home equity. Equity is simply the difference between what your home is worth today and what you still owe on your mortgage.
Every time you make a payment, your loan balance goes down. At the same time, when home values rise, the equity you’re building grows even faster.
Here’s a simple example:
If your home is worth $500,000 today and you still owe $200,000, you have $300,000 in equity.
According to Cotality (formerly CoreLogic), the average homeowner with a mortgage now has about $311,000 in equity.
Why You Probably Have More Than You Think
There are two main reasons homeowners are sitting on record amounts of equity right now:
- Home price growth – According to the Federal Housing Finance Agency (FHFA), home prices nationwide are up over 57% in just the past five years.
- Loan paydown – Each monthly payment you’ve made has chipped away at your balance and built your ownership stake in your property.
Put together, that’s a recipe for a lot of hidden wealth you may not even realize you have.
2. People Are Living in Their Homes Longer. Data from the National Association of Realtors (NAR), shows the average homeowner stays in their home for about 10 years now (see graph below):
What a Decade in Your Home Could Mean for Your Wealth
Staying in your home for 10 years or more? That’s longer than many homeowners used to — and in that time, you’ve likely built equity without even realizing it. Every mortgage payment you’ve made and every uptick in home values has been working quietly in your favor.
According to the National Association of Realtors (NAR), over the past decade the typical homeowner has gained about $201,600 in wealth from price appreciation alone.
That’s a powerful number. But what really matters is: What could you do with it?
Smart Ways to Use Your Equity
- Move into your next home. Your equity could cover the down payment, or in some cases, allow you to buy your next place with all cash.
- Upgrade your current home. Renovations that fit your lifestyle now can also increase your property’s value if you decide to sell later.
- Launch your dream business. Equity can provide the capital for startup costs, equipment, or marketing—helping you invest in your future.
The Bottom Line
Your home is likely worth more than you think, and the equity you’ve built isn’t just a number—it’s a tool you can use to create new opportunities.
If you sold today and had that equity at your fingertips, what would you do with it? Let’s talk about how to turn the value in your home into your next big move.
