Over the past few years, you may have noticed headlines about rising home prices. But have you ever considered what this means for your home’s value?

Home prices have seen remarkable growth over the past five years, far surpassing typical rates. If selling has been on your mind, this could mean an even bigger return on your investment than you expected. So, just how much has your home’s value increased? Let’s take a closer look.

The Impressive Growth of the Past 5 Years

Historically, home prices rise by about 2-5% annually. However, between 2021 and 2022, prices surged by double-digit percentages, with some areas experiencing over 20% growth. The reason? A high demand for homes and limited inventory pushed prices to new heights. While the market has since stabilized, homeowners continue to benefit from these significant gains.

This means your home has likely appreciated far more than usual in such a short time—translating to increased wealth and potential financial flexibility.

According to data from the Federal Housing Finance Agency (FHFA), home prices across the country have increased by nearly 60% in just the past five years. Below is a breakdown of appreciation rates by state:

If concerns about today’s mortgage rates and home prices have made you hesitant to sell, consider how much equity you’ve built. The value increase may help bridge the affordability gap, making your next home purchase more feasible than you imagined.

And if you’ve owned your home for even longer, your value gains are even more substantial. Not only have you benefited from the accelerated growth of the past five years, but you’ve also accrued appreciation from previous years. A real estate agent can help you determine exactly how much equity you’ve gained.

How To Determine Your Home’s True Value

While general appreciation percentages are helpful, you likely want a more precise figure for your home. The best way to determine your property’s current value is to speak with a local real estate expert.

The state-wide averages shown above don’t account for local market conditions. Factors such as low inventory, neighborhood demand, and home improvements can significantly impact your home’s worth. A real estate agent has the expertise and market data necessary to provide you with an accurate valuation.

By analyzing market trends, recent sales, and your home’s condition, an agent can offer a tailored estimate of your home’s value—helping you make an informed decision about selling.

Bottom Line

Home values have increased—likely more than you expected. If you’re curious about your home’s current worth, now is the time to find out. Reach out to Mike Panza and the team at Panza Home Group for expert insights and a personalized home valuation. Contact Panza Home Group here.