Kansas Homeowner’s Gained an average of $30,000 in Equity over the Past Year
When you think of homeownership, what’s the first thing that comes to mind? Chances are, you will focus on the non-financial benefits, such as the security and stability a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.
For a homeowner, the equity is the current value of the home minus what is owed on the loan. So, as home values climb, your equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Currently, this low supply and high demand are providing current homeowners with a significant equity boost.
To determine the extent to which rising home values have impacted equity, we refer to the latest Homeowner Equity Insights from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months. Kansas homeowners’ equity, on average, has grown by $30,000 over the last 12 months. Kansas ranks among the highest states in homeowner equity growth in the Midwest.
Homeowner Equity Growth - Average Equity Gain - Kim Ostrom
How Rising Equity Impacts You
If you’re already a homeowner, equity not only builds your wealth, but it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.
If you’re considering becoming a homeowner, understanding the importance of equity can help you appreciate why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but also from a financial one too.
Bottom Line
Whether you’re a current homeowner or you’re ready to become one, it’s essential to know how equity works and why it matters.
If you are interested in purchasing a home now or in the future, Kansas, more specifically the greater Wichita area, ranks the highest state in homeowner equity growth in the Midwest.
The financial benefits of buying a home versus renting one are often debated. However, one element of the equation is often ignored – the ability to build wealth as a homeowner. Homeownership is a key pathway to building wealth and, on average, is more profitable than any other investment vehicle.
If this inspires you to take action, let’s have a conversation about your options and discuss the next steps.
Kimmy Ostrom, REALTOR®
Cloud 9 Realty Group, LLC
(316) 665-6477
Serving all of Wichita and south-central Kansas
