Building equity in your home is one of the greatest financial benefits of homeownership. Right now, homeowners across the country are experiencing record-high equity levels.

Here’s why that equity could be a game changer for your next move, shifting your perspective from “Why would I move right now?” to “Why wouldn’t I?”

What Is Home Equity?

Home equity is the difference between your home’s current market value and the amount you owe on your mortgage. For instance, if your home is worth $400,000 and you owe $200,000, your equity amounts to $200,000.

This built-up equity is especially important for homeowners considering selling, as it provides a major financial advantage when planning their next move.

Why Home Equity Is a Big Deal for Sellers

Recent data from the Census Bureau and ATTOM underscores the power of today’s home equity. Over two-thirds of homeowners either own their homes outright or have at least 50% equity in them. Here’s a visual breakdown:

Think about it: Two out of three homeowners have at least 50% equity in their properties. To give you a clearer picture, CoreLogic reports that the average homeowner has $311,000 in equity. This type of wealth can significantly impact your ability to make a move.

The Rise of All-Cash Buyers

This surge in equity is one reason why the share of all-cash homebuyers has reached new heights. According to the National Association of Realtors (NAR), 26% of homebuyers purchased properties without needing a mortgage last year. Take a look:

Buying a home in cash comes with incredible advantages: no monthly payments, no interest rates, and a stronger position in competitive markets. For homeowners with significant equity, this scenario is increasingly achievable.

How to Leverage Your Equity

Wondering if you have enough equity to purchase your next home in cash? A professional equity assessment report (PEAR) can provide clarity. Even if a full cash purchase isn’t an option, you may have enough equity to make a larger down payment, which can reduce your monthly payments and improve your mortgage terms.

In today’s high-rate environment, having substantial equity can make all the difference, giving you financial flexibility and peace of mind as you plan your next step.

Bottom Line

With record levels of home equity, homeowners today are in a prime position to take the next step—whether that means buying their next home in cash or securing a better financial foundation for the future. To explore how your equity can help fuel your next move, let’s connect today.