There are a number of reasons you may be thinking about selling your house. And as you weigh your options, you may find you’re unsure how you’re going to deal with one thing about today’s housing market – and that’s affordability. If that’s your biggest concern, understanding how much equity you have in your house could help make your decision that much easier. Here are two key factors that have a big impact on your equity.
How Long You’ve Been in Your Home
First up is homeowner tenure. That’s how long homeowners live in a house, on average, before selling or choosing to move. From 1985 to 2009, the average length of time homeowners stayed put was roughly six years.
But according to the National Association of Realtors (NAR), that number has been climbing. Now, the average tenure is 10 years (see graph below):
How Home Prices Appreciate over Time
To help show how much the price appreciation piece adds up, take a look at this data from the Federal Housing Finance Agency (FHFA) (see graph below):
Whether you’re looking to downsize, relocate to a dream destination, or move so you can live closer to friends or loved ones, your equity can be a game changer.
Bottom Line
Connect with a local real estate agent if you want to find out how much equity you’ve built up over the years and how you can use it to buy your next home.