If you've scanned a headline about the housing market in the past year, you've probably heard terms like "seller's market" and "equity gains," all tied to a general upward trend in house valuations. With the national median listing price of single-family homes up 16.9% since last year (for an average of $450,000, according to Realtor.com), it's no surprise that the Federal Reserve reported that home equity is at an all-time high, up nearly 20% in the first quarter of the year.
Equity, otherwise known as the difference between what you still owe on your mortgage and the current value of your home, is an important resource for homeowners. Not only is it a great way to build savings, but with a home equity loan or line of credit, you can also borrow against your home's equity to use it in several different ways. Those include:
Consolidating debt
Making home renovations (which could add more value to your home)
Making a down payment on a second home
Planning a wedding or vacation
Though home values are increasing, the upward momentum of home equity makes this a compelling time to buy, especially in Florida with the tailwinds of equity gains being felt throughout the Sunshine State. CoreLogic estimates the average homeowner in Florida has experienced an average equity gain of $90,000 in the last year, roughly 40% more than the national average.
In Jacksonville, Florida, where equity growth in 2021 was 25.2% (about 31% above the national average, according to Roofstock), the average cost of homes ($308,300) remains lower than the state average of $397,280, according to Zillow. In addition, as of August 2022, Payscale reports that the cost of housing, utilities, transportation and healthcare are overall lower than the national average. With trends in home values expected to continue, now is a good time to buy to begin building equity.
If you're ready to start building equity through homeownership, VyStar Credit Union has great mortgage offers!