Here’s something many homeowners overlook—yet it could be the key to your next big move: the current value of your home.

It’s easy to forget that your house is likely your largest financial asset. If you’ve been living in your home for several years, chances are it’s been steadily building wealth for you in the background, even if you haven’t been actively monitoring it.

In many cases, homeowners are pleasantly surprised to find out how much their property has appreciated—even through the recent shifts in the real estate market.

What Is Home Equity?

This built-up wealth is known as equity. Put simply, equity is the difference between your home’s current market value and the remaining balance on your mortgage. As you make monthly payments and home values appreciate, your equity grows.

Let’s break it down with an example. Say your home is currently valued at $500,000 and you still owe $200,000 on your mortgage. That means you’ve built up $300,000 in equity. In fact, according to data from Cotality, the average U.S. homeowner with a mortgage now has approximately $302,000 in home equity.

Why You Likely Have More Equity Than You Realize

There are two major reasons your home equity may be much higher than you think:

1. Home Prices Have Seen Remarkable Growth

According to the Federal Housing Finance Agency (FHFA), home prices have increased by nearly 54% over the past five years across the United States .

That significant growth means your home may be worth far more today than when you bought it. And while home price trends can vary from market to market, if you’ve owned your home for several years or more, you’ve likely built up a substantial amount of equity—even if prices are stabilizing or slightly declining in some areas.

2. Homeowners Are Staying Put Longer

Data from the National Association of Realtors (NAR) shows that homeowners now remain in their homes for an average of 10 years .

That longer tenure means more time to pay down your mortgage and more time for property values to appreciate. The result? A significant boost in equity over time. Real estate is a long-term investment, and those who stay the course are reaping the rewards.

In fact, according to NAR:

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

That’s a powerful financial tool—and one that could help you take your next big step.

How Can You Use That Equity?

Your home equity doesn’t have to just sit on paper. It can help fuel your future in a variety of meaningful ways, depending on your financial goals:

• Upgrade to Your Next Home: Thinking of moving? You could use your equity to make a larger down payment on your next house—or even purchase your next home with all cash, reducing or eliminating monthly mortgage payments.

• Remodel to Meet Your Current Needs: Maybe it’s time to refresh your kitchen, add a home office, or create more space for your growing family. Strategic renovations can enhance your lifestyle while potentially adding even more value to your home.

• Launch a Business: Always dreamed of starting your own company? Tapping into your home equity could provide the funding you need for startup costs, equipment, or marketing—giving you a solid foundation to build something great.

Bottom Line

Chances are good that your home has built up significant equity over the years. Whether you’re dreaming of a new home, planning a remodel, or looking to invest in your future, knowing your home’s current value is the first step.

Curious about what your home is worth in today’s market? Reach out to Mike Panza and the expert team at Panza Home Group. They’re here to help you assess your property’s value and explore the exciting opportunities your equity can unlock.