What’s Your House Worth Now? The Answer May Surprise You

What’s Your House Worth Now? The Answer May Surprise You

Let’s talk about something you might not check nearly as often as your bank account – and that’s how much your home is worth. But when it comes to your financial situation, it’s an important thing to remember. When’s the last time you had a professional show you the value of your home?

Think about it. For most people, your house is probably the biggest asset you have. And if you’ve owned your home for a few years (or longer), chances are it’s been quietly building wealth for you in the background. And honestly? You might be surprised by just how much.

What Is Home Equity?

This wealth you may not even realize you have comes in the form of home equity. That’s the difference between what your house is worth and what you still owe on your mortgage. It increases as home prices go up and as you continue making mortgage payments each month. Here’s a simple example to explain how it works.

Let’s say your house is now worth $500,000, and you still owe $200,000 on your mortgage. That means you have $300,000 in equity. And right now, most homeowners are sitting on a good amount of equity.

According to Cotality (formerly CoreLogic), the average homeowner with a mortgage has about $311,000 in equity.

Why You Probably Have More Than You Think

There are two big reasons why homeowners like you are holding onto record levels of equity right now:

1. Significant Home Price Growth. Based on data from the Federal Housing Finance Agency (FHFA), home prices have risen over 57% nationwide over the last five years (see map below):

And if you purchased your home a few years ago (or more), this means your house is likely worth much more now than when you first bought it, thanks to how much prices have climbed lately.

2. People Are Living in Their Homes Longer. According to data from the National Association of Realtors (NAR), the typical homeowner now stays in their home for around 10 years (see graph below):

That’s longer than it used to be. And during that time? You’ve built equity just by making your mortgage payments and benefiting from the steady rise in home values.

So, if you’re someone who’s owned their home for about that long, here’s how much home price appreciation has worked in your favor. According to NAR:

“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”

What Could You Actually Do with That Equity?

Remember, your house might be your biggest financial asset – and when you use your equity wisely, it can unlock some incredible options for your future.

Use it to help buy your next home. Your equity could go toward your next down payment—and in some cases, it might be enough to purchase your next place in cash.

Renovate your current house to better suit your life now. With the right upgrades, you can enjoy your space more and potentially boost your home’s future resale value too.

Start the business you’ve always dreamed of. Equity could give you access to funds for launch costs, gear, or marketing—helping turn your idea into income.

Bottom Line

Chances are, your house is worth a lot more than you realize. Whether you’re ready to sell, thinking of renovating, or just curious about your options, keep this in mind: your equity isn’t just a number. It’s a tool.

If you sold your house and had significant equity to work with, what would you do with it? Let’s figure out how to turn your home’s value into your next big move.