If you’ve owned your home for a few years, you might be sitting on more equity than you think. Home prices have surged dramatically over the past five years, and that could mean a bigger payout if you decide to sell. But how much is your home really worth today? Let’s break it down.
Why Home Prices Have Jumped
Under normal conditions, home prices rise by about 2-5% per year. But recent years have been anything but normal. Between 2021 and 2022, prices spiked by double digits—in some cases, more than 20%. The reason? A flood of buyers and too few homes on the market sent prices soaring.
Even though the market has calmed a bit, the gains remain. That means homeowners who bought years ago may have built up way more equity than expected.
How Much Has Your Home Grown in Value?
According to data from the Federal Housing Finance Agency (FHFA), home values nationwide have increased by nearly 60% in the last five years. If you’ve owned your home for even longer, the appreciation is even greater. That equity can help you afford your next home, cover a down payment, or even allow you to buy in cash.
The Best Way To Find Your Home’s True Value
While national stats give a broad picture, every market is different. What really determines your home’s worth? Factors like:
Local demand: Are homes in your area selling quickly? Low inventory can drive prices higher.
Recent sales: What have similar homes in your neighborhood sold for?
Home upgrades: Have you renovated or made improvements? Those updates add value.The most accurate way to get your home’s current value is to connect with a local real estate expert. Online estimates can be helpful, but they don’t take into account your home’s unique features or market trends.
Bottom Line
Your home may be worth more than you think, and that equity could open doors for your next move. If you’re curious about your home’s value in today’s market, let’s connect and run the numbers!