Homeowners Gained $28K in Equity over the Past Year: Insights from Los Angeles and Beverly Hills, CA
Homeowners Gained $28K in Equity over the Past Year: Insights from Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you own a home, your net worth has likely increased significantly over the past year. Rising home prices have accelerated equity growth, giving homeowners a substantial financial boost. Here’s how it works.
Equity is the current value of your home minus what you owe on your mortgage. Over the past year, the strong demand for homes and limited inventory have driven prices up, directly increasing equity for homeowners.
How Much Equity Have You Earned over the Past 12 Months?
According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner's equity has grown by $28,000 in the last year alone. While this is the national average, Los Angeles and Beverly Hills homeowners have likely seen even more significant gains due to the high demand and premium property values in these areas.
What If You Bought Your House Before the Pandemic?
If you bought your house before the pandemic, your equity growth is even more impressive. Realtor.com data shows that home prices have surged by 37.5% from May 2019 to May 2024. This means your home's value has likely appreciated substantially. Ralph McLaughlin, Senior Economist at Realtor.com, highlights:
“Homeowners have seen extraordinary gains in home equity over the past five years.”
Selma Hepp, Chief Economist at CoreLogic, adds that the total equity the typical homeowner holds today is approaching the historic peaks of 2023, nearing a total of $305,000 per owner.
How Your Rising Home Equity Can Help You
With prices having skyrocketed a few years ago and ongoing growth today, homeowners in Los Angeles and Beverly Hills have built substantial equity. This equity offers serious benefits. It can be used to start a business, fund education, or help afford your next home. When you sell, the equity you've built up returns to you and can cover a significant part of your next home’s down payment.
Real Estate in Los Angeles and Beverly Hills
The luxury real estate markets in Los Angeles and Beverly Hills exemplify these trends. In Beverly Hills, properties often see rapid appreciation due to their iconic status and consistent demand. The high-end market in Los Angeles offers diverse investment opportunities, from modern downtown condos to expansive hillside estates. For instance, in Malibu Beach, even with a recent 55% drop in average sales price, properties still command premium prices, highlighting the enduring value of real estate in these prestigious areas.
Bottom Line
If you're planning to move, the equity you've gained can be a tremendous asset. Curious about how much equity you have and how you can use it to help pay for your next home? Let’s connect. Whether you’re in Los Angeles, Beverly Hills, or another prime location, leveraging your home equity can significantly enhance your financial position.
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value
