Over
the past few years, you’ve probably seen a whole lot of headlines about
how home prices keep going up. But have you ever stopped to think about
what that actually means for your home?
Home prices have risen
dramatically over the past five years — far more than usual. And if
selling has been on your mind, this could mean a bigger-than-expected
payday when you list. So, how much has your home’s value really changed?
Let’s break it down.
The Rapid Rise of the Past 5 Years
Typically,
home prices go up by about 2-5% a year. But in 2021-2022, there were
double-digit increases. And at the peak, prices rose by a staggering 20%
or more nationally. Why? There were way more buyers than homes
available, which sent prices soaring. While things have normalized since
then, you still get to reap the benefits of those massive increases.
Your
house has gained way more value than it normally would in such a short
period of time – and that means a lot more wealth for you, too.
The map below uses data from the Federal Housing Finance Agency (FHFA) to show that, nationally, prices have gone up by nearly 60% in just the past 5 years alone. Here’s a breakdown that takes that one step further and gives you the numbers by state:
If
you’ve been holding off on selling because you were worried about
buying your next home at today’s rates and prices, let that sink in. It
may be more than enough to help close the affordability gap and get you
into your next house.
And what if you’ve been there for longer?
That means your home’s value is probably even higher now. You get to
stack the abnormal gains of the past 5 years on top of five years of
more normal appreciation too. And an agent can help you figure out what
that really looks like.
How To Find Out What Your House Is Really Worth
While a percentage is great, you probably want more specific numbers. The only way to get an accurate look at what your house is really worth is to talk to a local real estate agent.
While
the map above gives you the average appreciation rate by state, it
doesn’t take your local market into consideration. Like, is inventory
still low where you live? That may drive prices higher, and faster. Or
maybe you’ve done renovation that’ll add even more value to your house.
Those are insights you’ll need an agent to provide.
An agent will
know what’s happening where you live and can stack that up against the
data and the condition of your home to give you the best estimate of its
value possible. Only they have the data and expertise to find out your
real number today.
Bottom Line
Home values have climbed — maybe more than you expected. Are you curious about what your house is worth in today’s market? Let’s connect so you can find out.
Sally Heldman
Broker Owner
Metro Brokers / Heldman Real Estate
303.475.4508 CELL
sally@sallyheldman.com