Let’s talk about something you probably don’t check as often as your bank account—the value of your home. But if you live in North County San Diego, it’s definitely worth keeping an eye on.
Think about it: for most people, your home is your biggest asset. And here in North County, where the market has seen steady growth, there’s a good chance your home’s value has been rising quietly in the background.
If you haven’t had a professional take a look lately, you might be surprised by how much equity you’ve gained.
What Is Home Equity?
This wealth you may not even realize you have comes in the form of home equity. Home equity is the difference between what your house is worth and what you still owe on your mortgage. It grows over time as home values rise and as you pay down your mortgage each month. Here’s an example to help you really understand how this works.
Let’s say your house is now worth $500,000, and you have $200,000 left to pay off on your loan. That means you have $300,000 in equity. And most homeowners are sitting on some pretty significant equity right now.
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
Here are the two main reasons homeowners like you have record amounts of equity right now:
- Significant Home Price Growth. According to the Federal Housing Finance Agency (FHFA), home prices have jumped by more than 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.
People Are Living in Their Homes Longer. Data from the National Association of Realtors (NAR), shows the average homeowner stays in their home for about 10 years now (see graph below):
That’s longer than it used to be. And over that decade? You’ve built equity just by making your mortgage payments and riding the wave of rising home values.
So, if you’re one of those people who’s been in their home for that long, here’s how much the behind-the-scenes price growth has helped you out. 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, if you’re smart about how you leverage your equity, it could open up some exciting opportunities for your future.
- Use it to help buy your next home. Your equity could help you cover the down payment on your next home. In some cases, it might even mean you can buy your next house in all cash.
- Renovate your current house to better suit your life now. And, if you’re strategic about your projects, they could add even more value to your home if you do sell later on.
- Start the business you’ve always dreamed of. Your equity could be exactly what you need for startup costs, equipment, or marketing. And that could help increase your earning potential, so you’re getting yet another financial boost.
Bottom Line
Chances are, your home in North County San Diego is worth more than you think. Whether you're considering selling, upgrading, or simply exploring your options, your equity isn’t just a number—it’s a powerful tool.
At Shafran Realty Group, we help homeowners like you turn that equity into opportunity. So, if you sold today and had significant equity to work with—what would your next move be?
Let’s find out how your home’s value could help you take the next big step.