If you’ve seen headlines about home prices dropping, it’s easy to wonder what that means for the value of your home too. Here’s what you really need to know.
Even with small price declines in some markets, data shows you’re likely still way ahead. And that’s thanks to your home In other words, these modest declines can’t erase years of growth. Homeowners who’ve been in their houses for several years are still way ahead. Big time. And that’s true pretty much everywhere.
Odds are, in most places, if you’ve owned your home for more than a few years, you’ve already built the kind of equity many people could only dream about before the pandemic. And if you sell, you can use it to help you downsize, or move up.
And just in case you’re worried prices will crash and your equity will take a bigger hit in the near future, here’s what Jake Krimmel, Senior Economist at Realtor.com, has to say:
“The slight recent declines in aggregate value and total home equity are not cause for concern . . . Although the market is coming into better balance, large price declines nationally are extremely unlikely in the near term . . .”
The price moderation we’ve seen lately isn’t a cause for concern. It’s a signal of a market that’s finding its balance again after several years of unsustainable price growth. And after several years of major price appreciation, most homeowners are still in an incredibly strong position.
Bottom Line
Even with prices coming down in some markets, today’s homeowners are still sitting on near record amounts of equity.
If you’re wondering how much equity you have (or how far ahead you really are), connect with a local agent.
You might be surprised by what your home is actually worth today.
