Skip to intro (before main) Skip to main content

Two Lesser-Known Benefits of Rising Home Equity

Despite economic instability and a sense of general uncertainty that has hung heavy in the air since early 2020, the real estate market has been booming. Rock-bottom interest rates have caused buyer demand to soar, which in turn has pushed home prices skyward at surprising rates. And rising prices also mean rising home equity—which has some pretty big benefits for homeowners.

Rising Home Equity Comes with Unseen Benefits

a couple checking their rising home equity

As prices rise, so does your home equity. In fact, recent data from CoreLogic shows that the average homeowner gained $9,800 in equity over the past year alone! Experts predict that prices will continue to rise—at accelerated rates three to five times higher than in the past several years.

Rising home equity sounds good… but what does it actually mean for homeowners? Here are two key benefits.

It increases an owner’s buying power

Interior shot of a living room and kitchen

This past year, we’ve all spent a little more time at home—which has led us to reevaluate our needs and wants. Many an owner has found their home too small or inadequate to handle its new roles as an office, a school, or even a gym.

Fortunately, having equity in your home means having options. That gain in value can be used to purchase a larger home or even to build the perfect house from scratch.

It enables owners to help future generations

a father measuring his daughter

Increased equity means increased overall wealth. Increasing your wealth enables you to hand more down to future generations. This wealth can be passed directly through bequest or as a gift.

Additionally, wealth can be passed through investments in younger generations—such as by paying for school. Education provides younger generations with the ability to make and grown their own wealth.

Equity Builds a More Stable Financial Future

Increased equity means increased wealth. Increased wealth means a more stable financial future. It means move-up options, and the chance to grow wealth even further. In short, real estate is one of the smartest investments a person can make!

Want to Cash Out on Your Home Equity?

Are you ready to make a move and reap the financial rewards of rising home equity? We’d love to help! Contact Linda Craft & Team today to find out what a difference 30+ years in the real estate business can make. Give us a call at 919-235-0007 and let us put our experience to work for you.

Leave a Reply

Explore Triangle Areas