You Might Be Sitting on More Wealth Than You Think

Ever stop to consider how much wealth you’ve quietly built just by owning your home? With rising property values, many homeowners are gaining equity faster than they realize. If you’ve owned your home for a few years, chances are you’ve built up a solid amount of equity—possibly more than you expected.

So, What Exactly Is Equity?
In simple terms, equity is the difference between what your home is worth today and what you still owe on your mortgage. For example, if your property is valued at $500,000 and your loan balance is $200,000, you’re sitting on $300,000 in equity. That’s real wealth—and it’s growing.

According to the latest data from ICE (Intercontinental Exchange), the average U.S. homeowner with a mortgage has about $319,000 in equity right now.

How Did We Get Here?
There are two big reasons homeowners have seen their equity skyrocket:

1. Home Prices Have Soared
   Over the past five years, property values nationwide have jumped by over 57%, according to the Federal Housing Finance Agency (FHFA). That means even if you bought recently, your home has likely appreciated significantly.

2. People Are Staying Put Longer
   Stats from the National Association of Realtors (NAR) show homeowners are staying in their homes for about 10 years on average. That’s a full decade of rising values working in your favor. In fact, NAR reports the typical homeowner has gained over $200,000 in wealth just from appreciation over the past 10 years.

What Can You Do with All That Equity?
Home equity isn’t just a number on paper—it’s a powerful financial tool. Here are a few ways people are putting it to work:

• Move Up or Downsize: Your equity could easily cover the down payment for your next home—or, depending on your situation, let you purchase all cash.

• Upgrade Your Space: Thinking about a remodel or adding that home office? Tap into your equity to finance improvements and add value to your property.

• Launch a Business: Got a side hustle or big idea? Your equity could help fund your dream.

Bottom Line
Your home isn’t just where you live—it might also be your biggest asset. If you're curious about how much equity you’ve built or how it could support your next move or big idea, I’d be happy to walk you through your options. Let’s talk!