Your Home Might Be Worth More Than You Think — Let’s Talk Equity
When was the last time you checked in on your home’s value?
You probably check your bank account regularly, but what about the equity you’re building right in your own home?
For many homeowners on Cape Cod, their property is one of their biggest financial assets. And if you’ve owned your home for a few years or more, chances are you’ve been quietly building wealth without even realizing it.
Let’s break down what that means — and how you can put that value to work.
💰 What Is Home Equity?
Home equity is the difference between what your home is worth and what you still owe on your mortgage.
It increases in two ways:
As home values rise
As you pay down your loan
Here’s a simple example:
If your home is worth $500,000 and your mortgage balance is $200,000, your equity is $300,000.
According to Cotality (formerly CoreLogic), the average U.S. homeowner with a mortgage now has around $311,000 in equity — and that includes many here in Cape Cod.
📈 Why You Likely Have More Equity Than You Think
There are two major reasons homeowners are sitting on more equity than ever:
Home Prices Have Surged
Over the past five years, home prices have risen more than 57% nationally, according to the Federal Housing Finance Agency (FHFA). Cape Cod has followed that trend — and in some areas, even exceeded it due to demand for vacation homes and limited inventory.
Homeowners Are Staying Put Longer
According to the National Association of Realtors, the average homeowner now stays in their home for about 10 years. That’s 10 years of steady mortgage payments and home appreciation. Over that time, many Cape Cod homeowners have seen their net worth grow substantially — simply by staying put. NAR says it best: “Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
What Can You Do With Your Home Equity?
This isn’t just a number on a spreadsheet — your equity is a powerful financial tool. Here are a few ways you can use it:
🏡 Use It To Buy Your Next Home
Your equity could serve as a down payment on your next house, or even allow you to purchase all-cash if you’re downsizing or relocating within the Cape.
🔨 Renovate and Add Value
Use your equity to upgrade your current home — think kitchen remodels, energy-efficient upgrades, or a fresh exterior. The right projects can increase your home’s value even more if you choose to sell down the line.
💼 Fund a Dream or Investment
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🧭 Bottom Line
If you’ve been in your home for a few years — especially in a high-demand market like Cape Cod — you could be sitting on significant equity.
Whether you’re thinking about selling, moving up, downsizing, or just want to understand your options, it’s worth knowing what your home is truly worth in today’s market.