You probably check your bank account pretty regularly—but when’s the last time you checked your home’s value? If it’s been a while, you might be in for a pleasant surprise. For most people, your house is your biggest financial asset, and chances are, it’s been building home equity quietly in the background.
What Is Home Equity?
The wealth you’ve accumulated through homeownership comes in the form of home equity—that’s the difference between what your Raleigh home is worth and what you still owe on your mortgage. As home values rise and you pay down your loan, your equity grows.
Here’s an example:
If your home is now worth $500,000 and your remaining mortgage is $200,000, you have $300,000 in equity. And according to Cotality (formerly CoreLogic), the average U.S. homeowner with a mortgage has around $311,000 in equity.
Why You May Have More Equity Than You Think
Here are the two main reasons homeowners like you have record amounts of equity right now:
1. Home Prices Have Jumped
According to the Federal Housing Finance Agency (FHFA), home prices have risen more than 57% nationwide over the past five years (see map below):
If you bought your Triangle area home a few years ago, it’s likely worth significantly more now, simply because of market appreciation.
2. Homeowners Are Staying Put Longer
Today, the average homeowner stays in their home about 10 years, according to the National Association of Realtors (NAR) (see graph below):
That longer stay, combined with monthly mortgage payments and rising home prices, means you’ve likely built up even more equity than you expected. In fact, NAR says the typical homeowner has gained $201,600 in wealth from price appreciation alone over the last decade:
Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
How Can You Use Your Home Equity?
Think of your equity as more than a number—it’s a powerful financial tool. Here’s what you can do with it:
- Buy your next Triangle area home: Use equity to fund your down payment or even buy your next home in all cash.
- Renovate your current space: Make upgrades that fit your life now—and boost future resale value.
- Start a business: Leverage your equity to cover startup costs or investments that support your financial future.
Bottom Line
Your house may be worth far more than you think, and that equity could be the key to your next big move—whether that’s selling, renovating, or starting something new. Contact Linda Craft Team Realtors to find out what your Triangle area home is really worth and explore how you can make the most of it.