A major motivation behind choosing to become a homeowner is appreciation. Rather than thinking of your mortgage payments as money you’ve lost, remember that each payment is actually an investment you get to keep and cash in on someday when you list your La Jolla home for sale. It’s like contributing to a savings account every month—only better! In other words, the key to growing your wealth via homeownership is growing your equity.
How to Increase Equity in Your Home
Equity is the difference between your home’s total value and the amount you still need to pay back on your mortgage. The more equity you have, the more wealth you have.
While making your mortgage payments is essential to owning equity and growing equity in your home, it’s not the only factor that determines how much equity you have. Home appreciation plays a big role as well. Generally, building equity in this way is a long game. But in the current market with skyrocketing home prices, building wealth as a homeowner has never been easier.
2021: The Year of Equity Growth
In the last year, we’ve seen a major increase in home equity. Across the nation, mortgaged homes increased equity by over $33,000 on average in the last year which is a 6% overall increase.
If you’re a San Diego homeowner or you’re looking to buy a home with a La Jolla real estate agent, you’re in good company. San Diego is known for having a high percentage of equity-rich properties. These are the properties where homeowners have accumulated 50% or more of the equity in their homes. In the fourth quarter of 2020, 44.5% of the properties in San Diego were equity-rich. This only grew in the first quarter of 2021 with 49.3% of properties being equity rich.
Take the First Step Toward Building Equity with La Jolla Real Estate Agents
If you want to start building wealth through equity, it’s time to begin the house hunt. The Horton Realty Team will happy to help you as you look for La Jolla homes for sale. If you’ve worked hard to build equity in your home and you’re ready to sell, we can help with that too! Get in touch with us today to get started!