California’s rise in home equity is making headlines! A recent article from Nasdaq.com notes that California has experienced a significant surge in home equity.
Homeownership is more than just a source of pride. It’s also an investment that can yield significant returns, specifically in the dynamic real estate landscape of California.
California’s Rise in Home Equity
Amid high mortgage rates and limited inventory, home values have still seen a substantial increase throughout 2023. This surge has resulted in California being one of the top ten states with significant gains in home equity.
Hawaii +$64,000
California +$51,000
Massachusetts +45,000
Rhode Island +$43,000
Connecticut +$42,000
New Hampshire +$41,000
New Jersey +$41,000
Maine +$34,000
Wisconsin +$30,000
Florida +$28,000
What Factors Contribute to Home Equity Growth?
Home equity represents the value of a property minus the outstanding mortgage debt. Calculated by subtracting the mortgage balance from the estimated total property value, home equity is a crucial financial metric for homeowners.
Several factors contribute to the increase in home equity. Regular mortgage payments contribute to equity growth, and homeowners who make larger down payments start with a higher equity base. Refinancing to shorten the loan term is another strategy to accelerate equity accumulation. Additionally, market trends play a pivotal role.
For a personal Home Equity Report, visit my Seller Resource page.