Do You Know Your Home’s Actual Market Value?

Here’s a question: Do you know the one thing most homeowners don’t have a professional review as often as they should? Hint—it’s their home’s value.

The truth is, your house is probably your biggest financial asset. And if you’ve owned it for several years, it’s likely been gaining equity behind the scenes—whether or not you’ve been paying close attention.

You may be surprised at how much it’s appreciated, even with recent shifts in the market.

What Exactly Is Home Equity?

Home equity is the hidden wealth tied up in your property. It’s simply the difference between your home’s current market value and the remaining balance on your mortgage. Over time, your equity builds as property values increase and as you continue making mortgage payments.

Here’s a quick example: if your home is valued at $500,000 and you still owe $200,000 on your loan, you’ve built up $300,000 in equity.

In fact, research from Cotality shows that the average homeowner with a mortgage has around $302,000 in equity today.

Why You Likely Have More Equity Than You Realize

Here are the two biggest factors behind the near-record levels of equity many homeowners have today:

Substantial Home Price Appreciation. Data from the Federal Housing Finance Agency (FHFA) shows that, over the past five years, home prices have risen nearly 54% nationwide (see map below):

In other words, your home is probably valued much higher today than when you originally purchased it, thanks to years of rising prices. And even if you’ve heard that prices are leveling off or dipping in certain areas, if you’ve owned your home for several years, chances are you’ve built enough equity to sell and still walk away with a profit.

Homeowners Are Staying Put Longer. According to data from the National Association of Realtors (NAR), the typical homeowner now remains in their home for around 10 years (see graph below):

That’s a longer stretch than in the past. And during those 10 years, your equity has grown steadily—both from paying down your mortgage and from home values appreciating over time. Remember, homeownership is a long-term investment, not something to stress over with every market dip. In the long run, you’re coming out ahead.

If you’ve owned your home for several years, here’s what that hidden growth looks like. As NAR reports:

“Over the last decade, the average homeowner has gained $201,600 in wealth from price appreciation alone.”

How Can You Put Your Equity to Work?

Your equity isn’t just sitting there—it’s a resource you can leverage to reach your next goal. Depending on what you want to achieve, you could:

• Use it toward your next home. Equity can cover your down payment, and in some cases, it might even allow you to purchase your next place outright with cash.

• Upgrade your current home. Renovations can make your space better fit your lifestyle, and if done wisely, they can also boost your home’s value when you decide to sell.

• Fund your dream business. Equity can provide the capital you need for startup expenses, equipment, software, or marketing—helping you build a new source of income and long-term financial growth.

The Takeaway:

Your home is likely worth more than you realize. If you’re interested in finding out its current value, reach out to a local agent who can crunch the numbers. That insight will give you a clear picture of your options and next steps.