Is Your Home Worth More? | Bay Area Realtor

When was the last time you checked the value of your home?

If you’re like most people, probably not as often as you should. But here’s the truth: your home is likely your biggest financial asset, and over time, it’s been working quietly in the background—building wealth, month by month—without you even realizing it. Even with recent shifts in the real estate market, there’s a good chance your equity has grown more than you think.

What Is Home Equity and Why It Matters

Home equity is the difference between your home’s current market value and the amount you still owe on your mortgage. As home prices increase and you continue to pay down your loan, your equity rises too.

Let’s break that down with a quick example:

Current home value: $500,000
Remaining mortgage balance: $200,000
Your equity: $300,000

That’s wealth you already own—and you’re not alone.

📊 According to Cotality, the average U.S. homeowner with a mortgage has about $302,000 in home equity today.

Why You Likely Have More Equity Than You Realize?

There are two big reasons why homeowners in 2025 are sitting on near-record levels of equity:

Home Prices Have Increased Sharply Over the Last Few Years:

According to the Federal Housing Finance Agency (FHFA), home prices nationwide have risen nearly 54% in the last five years. That’s a massive jump—especially if you bought your home before or during the early days of the pandemic.

Even if prices in your area have started to flatten, if you’ve owned your home for several years, you’ve likely gained significant equity just through appreciation alone.

2. Homeowners Are Staying Put Longer:

Data from the National Association of Realtors (NAR) shows the average homeowner now stays in their home for around 10 years. That’s more time for equity to build up—thanks to mortgage payments and steady home value growth.

💡 According to NAR: “Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.” In other words: the longer you’ve owned your home, the more it’s been quietly growing your net worth.

What Can You Do with Your Home Equity?

That equity isn’t just a number on paper. It’s a financial resource—and depending on your goals, you can use it to fund your next chapter:

1. 🔁 Buy Your Next Home

You can use your equity toward a down payment on your next property—and in some cases, it might even allow you to buy with cash.

2.🛠️ Renovate Your Current Home

Need a new kitchen? Want to add an ADU or home office? Tapping into your equity could help you upgrade your space to better fit your current lifestyle—and potentially add more value to your home over time.

3. 🚀 Start a Business or Side Hustle

Dreaming of launching your own business? Your home equity could provide the funding you need to get started—with capital for things like marketing, inventory, or equipment.

Bottom Line:

If it’s been a while since you’ve checked your home’s value, now’s a great time.

Even with market changes, there’s a good chance your home is worth more than you think—and that equity could open doors to your next big move, project, or investment.

Ready to find out what your home is really worth?

📲 Connect today to run the numbers and explore your options.

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