Over the past few years, the housing market has experienced significant price increases, leading many homeowners to wonder about their property's current value. Understanding your home's worth is crucial, especially if you're considering selling or leveraging your home's equity.
Historically, home prices have appreciated at a modest rate of 2-5% annually. However, between 2021 and 2022, the market witnessed unprecedented double-digit growth, with national averages exceeding 20% at their peak. This surge was primarily driven by a substantial imbalance between buyer demand and housing supply. Although the market has since stabilized, many homeowners have accumulated significant equity due to these rapid appreciations.
The Federal Housing Finance Agency (FHFA) recently released data showing housing prices have increased a staggering 57.1% nationally over the last five years. How much did home prices increase in your state over this the last five years? Take a look below to find out:
For current homeowners, it means your home value is probably higher now. Especially if you've been in your home for more than five years, it means your property value is probably even higher now thanks to the higher gains in addition to the more modest 2-5% annual growth rate.
This means the affordability gap for your next house could be much smaller than you think at today's prices and rates.
While the above map paints a general picture of the home market by state and as a whole, there are other conditions and factors your local market may be experiencing that should be taken into account.
Understanding your home's current market value is essential in making informed financial decisions. Whether you're contemplating selling, refinancing, or tapping into your home's equity, knowing its worth can guide your next steps. For a comprehensive evaluation and to explore your options, consider reaching out to a First Federal Bank Loan Officer today.