Thinking about purchasing a home in today’s market can be quite frustrating due to high mortgage rates, inflated prices, and low inventory. However, for those who were fortunate enough to buy before the pandemic, the situation is rather different.
Buyers in 2019 and 2020 locked in lower mortgage rates, estimated to be around 4% as opposed to the current 7%. Additionally, home prices were much more affordable back then. A recent report from Realtor.com revealed that from May 2019 to May 2024, the typical home listed price increased by 37.5%.
Some cities have experienced even more significant increases. For instance, in Nashville, Tennessee, the median home price surged from $375,000 in 2019 to $588,000 now, marking an impressive 57.1% increase. Similarly, in Memphis, Tennessee, home prices have also risen significantly, going from $230,000 to $350,000 since 2019.
According to Realtor.com senior economist Ralph McLaughlin, homeowners have witnessed remarkable gains in home equity over the past five years. Equity represents the value an owner holds in an asset minus any outstanding debt. As home values spiked during and after the pandemic, owners have seen substantial increases in equity, which could prove beneficial if they require funds through a home equity loan or line of credit.
Data from Zillow aligns with the findings from Realtor.com. Zillow estimates that the average U.S. home value now stands at around $360,000, up from just $240,000 five years ago, reflecting a 50% increase.
Top 10 Cities Where Home Equity Has Seen the Most Growth Since 2019
Over the past five years, home equity has increased by 50% or more in five major U.S. cities, as per Realtor.com. Additionally, several other metropolitan areas are hovering just below the 50% mark:
- Nashville, Tennessee: Home equity up 57.1%
- Los Angeles, California: 55.1%
- Providence, Rhode Island: 54.2%
- Austin, Texas: 52.3%
- Memphis, Tennessee: 52.1%
- Tampa, Florida: 49.6%
- San Diego, California: 49.5%
- Boston, Massachusetts: 49.4%
- Las Vegas, Nevada: 49.1%
- Hartford, Connecticut: 49.0%
If you are a homeowner in one of these cities looking to leverage your increased home equity, consider exploring your options for a home equity loan or line of credit. At OxfordWiseFinance.com, our team of financial experts can guide you through the process and help you make the most informed decision for your financial needs.
Looking for Home Equity Loans or Lines of Credit?
Check out our related articles:
- 9 Best Home Equity Loans of June 2024
- As Home Values Soar, Americans Are Sitting on Record High Home Equity
- 8 Best Mortgage Refinance Companies of 2024
For more detailed information and to explore your loan options, feel free to apply online.
