Over the past few years, you’ve probably seen many headlines about how home prices keep increasing. But have you ever stopped to think about what that means for your home?
Home prices have increased significantly over the past five years — much more than typical. If selling has been on your mind, this could lead to a larger-than-expected payday when you list. So, how much has your home’s value changed? Let’s break it down.
The Rapid Rise of the Past 5 Years
Home prices typically rise by about 2-5% each year. However, between 2021 and 2022, there were significant double-digit increases. At their peak, prices soared dramatically on a national level. Why did this happen? There were considerably more buyers than available homes, which pushed prices higher. While the market has normalized since then, you still benefit from those substantial gains.
Your house has gained way more value than it usually would in such a short period, which 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 hesitant to sell because you were concerned about purchasing your next home at today’s rates and prices, it may be sufficient to help close the affordability gap and assist you in moving into your next house.
And what if you’ve been there longer? That means your home’s value is likely even higher now. You can combine the unusual gains from the last five years with five years of more typical appreciation. I can help you understand what that indeed looks like.
How To Find Out What Your House Is Worth
While a percentage is nice, you likely want more specific figures. The only way to accurately understand your house’s value is to consult a local real estate agent.
While the map above gives you the average appreciation rate by state, it doesn’t consider your local market. Like, is inventory still low where you live? That may drive prices higher and faster. Or maybe you’ve done renovations to add 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 your home's data and condition to give you the best possible estimate of its value. Only they have the data and expertise to find your actual number today.
Bottom Line
Home values have increased—possibly more than you anticipated. Are you interested in knowing what your house is worth in today’s market? Reach out to me.
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