If you live in San Diego or own a home here, you’ve likely noticed a significant increase in your net worth over the past year. With the surge in home prices, your home equity gain is growing faster than you might realize. Here’s a closer look at why this is happening.
Home Equity Gains are simply the current market value of your home minus the remaining balance on your mortgage. Over the past year, the San Diego housing market has seen a high demand from buyers, while the number of available homes for sale has remained relatively low. This imbalance has driven home prices up, directly contributing to a substantial increase in equity for homeowners.
This trend has been especially pronounced in San Diego’s vibrant and competitive real estate market, offering homeowners a lucrative opportunity to boost their financial standing. As prices continue to climb, the equity in your home grows, enhancing your overall wealth and providing more financial flexibility.
How Much Equity Have San Diego Homeowners Earned Over the Past Year?
Curious about how much equity you’ve earned over the past 12 months? According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has increased by an impressive $28,000 nationwide in the past year alone.
But what does this mean if you own a home in San Diego? To understand how local markets compare, check out the map below. It highlights state-specific data from CoreLogic, revealing the equity growth in each region over the past year. Notably, every state with available data saw a rise in equity, demonstrating a positive trend across the board.
In San Diego, this trend is particularly evident. The city’s booming real estate market and rising property values have contributed significantly to homeowner equity. Whether you’re considering selling or just curious about your investment’s growth, this information is crucial. Stay informed and make educated decisions about your home’s equity in this thriving market.
What If You Bought Your House Before the Pandemic?
If you bought your house before the pandemic, the news about your home equity is even more exciting. Realtor.com reports that home prices surged by 37.5% from May 2019 to May 2024. This significant rise means your home’s value has likely seen a substantial boost. Ralph McLaughlin, Senior Economist at Realtor.com, highlights this by stating:
“Homeowners have seen extraordinary gains in home equity over the past five years.”
This trend is particularly noteworthy in San Diego. The local real estate market has been thriving, with many neighborhoods experiencing impressive appreciation in property values. If you own a home in areas like North Park or South Park, your home equity gains are likely even higher, thanks to the strong demand and desirable location.
To understand how much equity can grow over time, let’s look at some expert insights. Selma Hepp, Chief Economist at CoreLogic, sheds light on the current equity situation for the average homeowner.
“With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, close to a total of $305,000 per owner
San Diego, known for its vibrant real estate market, exemplifies this trend. With its desirable neighborhoods and strong demand, homeowners in San Diego are particularly benefiting from these rising property values. The city’s unique blend of coastal beauty, cultural richness, and economic opportunities makes it an attractive place to live and invest, further driving up home equity.
By understanding these trends, San Diego homeowners can better appreciate the value of their investments and make more informed decisions about their properties.
How Rising Home Equity Benefits San Diego Homeowners
San Diego’s real estate market has experienced significant price increases over the past few years, and this upward trend continues today. As a result, homeowners in San Diego have built up substantial equity in their properties, which offers several notable advantages.
This equity can be leveraged in various ways. For instance, you can use it to launch a new business, invest in education, or even make the down payment on your next home. When you decide to sell your current home, the equity you’ve accumulated can return to you, potentially covering a large portion—or even the entirety—of your next home’s down payment. This financial flexibility can make a significant difference in achieving your future goals.
San Diego’s vibrant housing market continues to benefit local homeowners, making it an opportune time to explore how your rising home equity can work for you.
Bottom Line on Homeowner Equity Gains in One Year in San Diego
If you’re planning to move, the equity you’ve gained can be a significant asset. In San Diego, home values have been on the rise, offering homeowners like you an excellent opportunity to leverage that increased equity. Wondering how much equity you’ve built up and how it can assist in purchasing your next home? Connect with a trusted local realtor like the McT Real Estate Group and let’s explore your options.