Kansas Homeowner’s Gained an average of $30,000 in Equity over the Past Year
When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the non-financial benefits, like the security or stability a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.
For a homeowner, your equity is the current value of your home minus what you owe on the loan. So, as home values climb, your equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.
To find out just how much rising home values have impacted equity, we turn to the latest Homeowner Equity Insights from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months. Kansas homeowner’s equity, on average, has grown by $30,000 over the last 12 months. Kansas ranks among the highest state in homeowner equity growth, in Midwest.
Homeowner Equity Growth - Average Equity Gain - Kim Ostrom
How Rising Equity Impacts You
If you’re already a homeowner, equity not only builds your wealth, it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.
If you’re thinking about becoming a homeowner, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a financial one too.
Bottom Line
Whether you’re a current homeowner or you’re ready to become one, it’s important to know how equity works and why it matters.
If you are interested in purchasing a home now or in the future, Kansas, more specifically the greater Wichita area, ranks the highest state in homeowner equity growth, in the Midwest.
The financial benefits of buying a home versus renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner. Homeownership is a key pathway to building wealth and, on average, is a more profitable than any other investment vehicles.
If this inspires you to make a move, let’s have a conversation concerning your options and discuss the next steps.
Kimmy Ostrom, Realtor
Keller Williams Hometown Partners, LLC
(316) 665-6477
