Did You Know?

If you are a homeowner in Vermont, your net worth got a boost over the past few years. Homeowners of today have accumulated substantial equity, despite the recent slowdown in home price appreciation. As a homeowner, the value of your assets has increased in the past few years due to the surge in home prices. This has implications for you, even as the market stabilizes.

How Equity Has Grown in Recent Years 

Due to the disparity between the quantity of available homes and the amount of potential buyers in recent years, there has been a significant increase in home prices. Although the rate of price growth has eased this year, it does not imply that the equity in your home has vanished. According to the most recent Homeowner Equity Insights report by CoreLogic, the typical homeowner's equity has risen by $34,300 in just one year.

If you’ve been in your home longer than one year, chances are you have even more equity than you realize.

While that estimation represents the national average, you can see how our state averages from the map provided by the Federal Housing Finance Agency (FHFA) below. The map illustrates the average increase in home prices over the last five years, which has been a major driver behind the growth of equity.

According to the FHFA, Vermont residences experienced an average appreciation of 55.2% statewide. Although this figure fluctuates across counties, it is reasonable to assume that as a homeowner in Vermont, you possess a substantial amount of equity.

Why Is This Important Right Now?

Equity not only boosts your overall net worth, but also aids in accomplishing other goals, such as buying your next home. Here’s how it works. When you sell your current house, the equity amassed is returned to you through the sale, and it could potentially cover a significant portion, if not the entirety, of the down payment for your next home.

If you have been delaying the sale of your property, it might be time to determine the amount of equity you have and how it can assist you in making your next move.

Bottom Line

If you’re a homeowner, it’s important to remember the benefits that come with building equity. In Vermont, homes have appreciated significantly over the past few years. If you are considering a change in your living situation, such as renovating or relocating, the equity you’ve gained over time can make a big impact. To find out just how much equity is in your current home and discuss your options, contact us today.