If you’ve been following real estate trends over the past few years, you’ve probably noticed that home prices have been on a dramatic rise. But what does that actually mean for you as a homeowner?

The last five years have been unlike anything the market has seen in decades. If selling your home has ever crossed your mind, you might be sitting on more equity than you realize. Let’s explore how home values have evolved and what it could mean for your next move.

A Historic Surge in Home Prices

In a typical year, home values tend to increase by about 2 to 5 percent. However, during 2021 and 2022, the market experienced unprecedented growth, with double-digit percentage increases nationwide. In some areas, home prices skyrocketed by over 20 percent, creating an unexpected windfall for homeowners.

This surge was largely driven by a supply-demand imbalance. There were far more buyers than available homes, pushing prices higher. Even though the market has since stabilized, homeowners who purchased before this boom are still benefiting from the substantial appreciation.

Your Home Might Be Worth More Than You Think

If you’ve owned your home for at least five years, you’ve likely gained significant equity. And if you’ve lived there even longer, your wealth has compounded with each passing year of appreciation. The result? You may have more financial flexibility than you anticipated.

Some homeowners hesitate to sell because of concerns about current mortgage rates or affordability for their next purchase. However, the increased value of your home could bridge that gap, giving you more options than you expected.

What’s Your Home’s True Value?

While general market trends provide a broad picture, the only way to get an accurate valuation of your home is to speak with a real estate professional. Several factors impact pricing, including:

• Local market conditions – Is there still high demand in your area? Are home prices continuing to rise?

• Recent sales nearby – The selling price of similar homes in your neighborhood can influence your home’s value.

• Home upgrades – Have you renovated or improved your property? Certain upgrades can significantly increase market value.

A real estate professional can analyze these elements and provide you with an accurate estimate tailored to your specific location and home features.

For a broader look at home price trends, you can explore data from the Federal Housing Finance Agency (FHFA), which tracks home appreciation rates across different regions.

The Bottom Line

Homeowners across the country have seen their property values appreciate at an extraordinary rate in recent years. If you’re curious about what your home is worth today, let’s connect. You might be surprised at the opportunities waiting for you in today’s market.