How Much Home Equity Have You Gained? The Answer Might Surprise You!

Have you ever paused to think about the hidden wealth you're building just by being a homeowner? It's like planting a tree - over time, it grows, providing shade, beauty, and value. Similarly, as home values rise, so does your net worth. If you've been in your house for a few years or more, there's a good chance you're sitting on a treasure trove of equity - possibly more than you even imagined!

What Is Home Equity?

Home equity is the difference between what your home is worth and what you owe on your mortgage. For instance, if your home is worth $300,000 and you owe $150,000 on your mortgage, your equity is $150,000. It's the wealth you've earned just by owning a home.

Here's the exciting part: homeowners across Indiana and the Midwest are seeing record amounts of equity! According to Intercontinental Exchange (ICE), the average U.S. homeowner with a mortgage has $319,000 in home equity. Imagine what that could mean for you right here in Indiana, where property values have been steadily climbing.

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Why Have Hoosier Homeowners Gained So Much Equity?

The surge in home equity boils down to two key factors:

• Dramatic Home Price Growth: Home prices have skyrocketed over the past few years. Nationally, prices have risen by 57.4% in the past five years, according to the Federal Housing Finance Agency (FHFA). And here in Indiana, cities like Crown Point and Valparaiso have seen impressive growth, making homeownership one of the best investments in the region.
• Longer Tenure in Homes: The National Association of Realtors (NAR) reports that homeowners are staying in their homes for around 10 years, giving home values plenty of time to appreciate. In fact, if you've been in your home for the past decade, your house may have earned you significant wealth. According to NAR, the average homeowner has accumulated $201,600 in wealth over the last 10 years from price appreciation alone!

What Can You Do With All That Equity?

Your home equity isn't just numbers on paper - it's a powerful financial tool. Here are some ways to use it:

• Upgrade to Your Dream Home: Ready to upsize, downsize, or relocate? Your equity can help fund the down payment on your next home - or maybe even buy it outright!
• Tackle Home Improvements: Thinking about a new kitchen, adding a home office, or creating the ultimate backyard oasis? Your equity can help bring these projects to life, making your home more functional and enjoyable while boosting its value.
• Kickstart a Business: Always wanted to launch a small business? Your home equity could provide the seed money to get things rolling - whether it's for startup costs, equipment, or marketing.

Indiana-Specific Fun Fact

Did you know the Hoosier housing market has consistently outperformed national trends? From the bustling streets of Indianapolis to the scenic shores of Lake Michigan, our region is seeing steady home price appreciation, making it an excellent time to assess your home's value.