Harnessing Homeownership: Unveiling the Trillions in Equity Gained by Homeowners
Imagine this: unless you live rent-free, you're essentially paying for someone else's mortgage. Whether it's your landlord's or your own, someone benefits from your payments. That's why owning a home comes with incredible perks. Each month, as you pay your mortgage, you chip away at the debt you took on when purchasing your home. This not only helps you save money but also increases your equity and overall wealth as your home's value appreciates.
Wealth and Its Significance to You
We all understand the importance of wealth, but not everyone realizes what it truly takes to achieve it. Accumulating wealth is a lifelong endeavor that grants you sustainable, long-term financial security. Wealth can be calculated by adding your personal savings, home equity, and business equity, then subtracting your debts. This serves as your shield when unexpected financial challenges arise (and trust us, they can happen in an instant).
Homeownership: A Key to Wealth Accumulation
Homeownership plays a pivotal role in wealth accumulation in the United States. According to the Federal Reserve, the average net worth of a homeowner is $195,400—36 times higher than that of the average renter in America.
According to a recent report from Black Knight, homeowners have gained trillions in equity over the last decade.
We may not be at 2021-2022 levels anymore, but we are experiencing a strong rebound this spring.
In fact, the average U.S. homeowner has $178K in tappable equity.
That's up $61K (54%) from the market average 3 years ago. (Source: Black Knight)
One of the major factors in calculating homeowner equity is home appreciation. According to data from the Charlotte area Multiple Listing Service (MLS), from 2021 to 2023, median home sales prices have risen over $100,000 in our area.
Reasons it's a great idea to understand your home appreciation:
- If it's increased, you can leverage that equity when selling or refinancing.
- If it's decreased, it allows you to identify any discrepancies in assessed value and potentially contest unfair tax assessments.
- Picture of your financial health! It helps you make informed decisions regarding investments, retirement planning, and budgeting.
Homeownership is a gateway to building wealth and securing your future. If you're curious to know how much equity you have right now, we'd be happy to prepare a Professional Equity Assessment Report for you. Contact us here or give me a call, 704-619-8594 📩🏠