How Much Home Equity Have You Gained? The Answer Might Surprise You

How Much Home Equity Have You Gained? The Answer Might Surprise You

Have you ever considered how much wealth you’ve built simply by owning your home? As home values continue to rise in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake, so does your net worth. If you’ve lived in your home for a few years—or even longer—there’s a good chance you’ve accumulated more equity than you realize.


What Is Home Equity?

Home equity is the difference between what your home is worth and what you still owe on your mortgage. For example, if your house is valued at $500,000 and your remaining loan balance is $200,000, you have $300,000 in equity. This represents the wealth you’ve built over time through homeownership.

Right now, homeowners across the country are seeing record levels of home equity. According to Intercontinental Exchange (ICE), the average homeowner with a mortgage has $319,000 in home equity—a significant financial asset that can open up exciting opportunities.


Why Have Homeowners in Tacoma, Puyallup, and Surrounding Areas Gained So Much Equity?

Two key factors have contributed to rising home equity:

1. Home Prices Have Increased Significantly

In recent years, home prices have surged across the U.S., and cities like Lake Tapps, Bonney Lake, and Auburn have experienced substantial appreciation. According to the Federal Housing Finance Agency (FHFA), home prices nationwide have risen 57.4% over the past five years (see map below):

If you purchased your home several years ago, chances are it’s worth significantly more today than when you bought it—boosting your equity in the process.

2. Homeowners Are Staying in Their Homes Longer

Recent data from the National Association of Realtors (NAR) shows that people are holding onto their homes for an average of 10 years (see graph below):

The longer you stay in your home, the more its value has likely grown. That’s why long-term homeowners in places like Des Moines, Normandy Park, and Burien have seen their wealth accumulate significantly over time. In fact, according to NAR:

“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”


How Can You Use Your Home Equity?

Your home equity isn’t just a number—it’s a powerful financial tool that can help you achieve your goals. Here’s how homeowners in Tacoma, SeaTac, and Sumner can put their equity to good use:

🔹 Moving to Your Next Home – Your equity could cover the down payment for your next house or even allow you to purchase a home all in cash, reducing your future mortgage costs.

🔹 Financing Home Improvements – Thinking about upgrading your kitchen, adding a home office, or making other improvements? Your equity can help fund these projects, increasing your home’s value and enhancing your living experience.

🔹 Starting a Business – If you’ve been dreaming of launching your own business, leveraging your home equity could provide the financial boost needed for startup costs, equipment, or marketing efforts.


Bottom Line

For homeowners in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake, home equity is more than just a number—it’s an opportunity. Whether you’re thinking about selling, upgrading, or investing in your future, your equity can help you take the next step.

If you’re curious about how much equity you’ve built or how to use it to reach your goals, connect with a local real estate expert to explore your options today.

/by KCM CREW

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