The Surprising Amount of Home Equity You’ve Gained Over the Years in Los Angeles and Beverly Hills, CA

The Surprising Amount of Home Equity You’ve Gained Over the Years in Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert 

If you're thinking about selling your home in Los Angeles or Beverly Hills, there’s likely one key factor weighing heavily on your mind: affordability. With rising property values and fluctuating interest rates, the real estate market can feel uncertain. However, understanding how much equity you've built in your home over the years could make your decision a lot easier. Equity is a powerful tool that can help you transition to your next property smoothly, whether you’re upgrading, downsizing, or relocating. Here’s why it matters, especially in luxury markets like Los Angeles and Beverly Hills.

How Long You’ve Been in Your Home

Homeownership tenure plays a significant role in building equity. In the high-demand areas of Los Angeles and Beverly Hills, many homeowners have stayed in their homes for longer periods due to the booming market and steady appreciation in property values. Nationally, the average homeowner used to stay in their home for about six years, but according to the National Association of Realtors (NAR), that number has now increased to an average of 10 years.

In luxury markets like Beverly Hills, where properties often start in the multi-million-dollar range, homeowners who have held onto their properties are likely sitting on substantial equity. As home prices steadily rise in these areas, so does your home’s value—and your equity grows with each mortgage payment and year of appreciation. If you've owned your home for a decade or more, you may be sitting on a significant financial asset, which could easily help fund your next real estate purchase or investment in the same sought-after markets.

How Home Prices Appreciate Over Time

Los Angeles and Beverly Hills have always been hot spots for real estate, known for their high-value properties and prestigious neighborhoods. If you've owned a home in these areas for at least five years, you’ve likely seen a significant rise in your home’s value. According to the Federal Housing Finance Agency (FHFA), homeowners who have owned their property for five years have seen nearly a 60% increase in value. For those who have owned a home for 30 years, property values have more than tripled.

In markets like Beverly Hills, where exclusive homes are often located in neighborhoods like the Beverly Hills Flats, Trousdale Estates, or Holmby Hills, this appreciation is particularly evident. Whether your home boasts modern amenities, historic charm, or a combination of both, price appreciation is almost guaranteed in such sought-after areas. This means you’re not just living in a luxury property—you’re also building wealth every day you own it.

Leveraging Your Equity in Los Angeles and Beverly Hills

Whether you're planning to downsize to a more manageable home, relocate to a new luxury property, or even invest in a second home, your home equity can make all the difference. In high-end markets like Beverly Hills and Los Angeles, having built a large amount of equity puts you in a favorable position to explore your options. You might be able to use your equity to purchase a new property without taking on as much debt, allowing you to maintain a comfortable financial position even when upgrading to a more luxurious home or an estate with expansive views of the Hollywood Hills.

Los Angeles’ luxury neighborhoods, like Bel-Air and Brentwood, also offer a variety of upscale homes that cater to a wide range of tastes. Whether you’re looking for modern architecture, classic Mediterranean-style homes, or secluded estates with incredible privacy, your equity can help you make that dream move with ease.

Bottom Line

The equity you’ve built in your home in Los Angeles or Beverly Hills could be a game changer when it comes to making your next real estate decision. If you want to explore how much equity you’ve accumulated and how you can use it to secure your next dream home, let's connect. In a market as competitive and rewarding as this one, having a clear understanding of your equity will help you make the best decisions for your future.

Whether you’re looking to buy or sell, your home equity is a valuable resource that can open doors to endless possibilities in the luxury real estate market.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value