There are many reasons you might be considering selling your home. As you explore your options, one common concern you may have is how to navigate today’s housing market, particularly when it comes to affordability. If this is top of mind for you, knowing how much equity you’ve built in your home could simplify your decision. Here are two key factors that significantly influence your equity.
How Long You’ve Owned Your Home
The first factor is homeowner tenure—how long, on average, people stay in a home before moving. From 1985 to 2009, the average length of stay was about six years.
However, data from the National Association of Realtors (NAR) shows that average tenure has increased to 10 years (see graph below).
This shift matters because equity grows as you pay down your mortgage and as home prices rise. If you’ve lived in your home for a decade or more, you’ve likely built substantial equity due to a combination of mortgage payments and rising home values.
How Home Prices Appreciate Over Time
To further illustrate the impact of home price appreciation, take a look at data from the Federal Housing Finance Agency (FHFA) (see graph below):
Here’s what this means for you: While home price growth varies by location, the typical homeowner who’s owned their home for five years has seen its value increase by nearly 60%. For those who have owned their home for 30 years, the value has more than tripled.
Whether you’re thinking of downsizing, moving to a dream destination, or relocating to be closer to family and friends, the equity you’ve built up can be a powerful asset.
If you’re curious about how much equity you’ve accumulated and how it could help you make your next move, connect with us to explore your options.