Homeownership is about more than having a place to live. Over time, your home can also become one of your most significant financial assets.
A recent graphic we reviewed from Keeping Current Matters provides an interesting look at just how much equity homeowners have accumulated across the United States—and Nevada homeowners have a lot of equity to talk about.
According to the graphic, the typical U.S. homeowner has approximately $310,500 in home equity.
In Nevada, the average is approximately $296,000 per homeowner.
That raises an important question:
How much equity could you have in your Las Vegas home?
What Is Home Equity?
Home equity is generally the difference between the current value of your property and the amount you still owe on loans secured by the home.
For example, if a home were worth $500,000 and the remaining mortgage balance were $250,000, the homeowner would have approximately $250,000 in equity before considering selling costs or other obligations.
Equity can grow in several ways.
As homeowners make mortgage payments, their loan balance may decline. At the same time, increases in property values can add to the homeowner’s equity.
Over many years, those two factors can create substantial wealth for homeowners.
Nevada Homeowners Have Built Significant Equity
The Keeping Current Matters graphic shows an interesting national picture.
California leads the states shown at approximately $627,000 in average homeowner equity, while Hawaii is even higher at approximately $688,000. Several western states also show substantial amounts.
Nevada stands at approximately $296,000.
That’s slightly below the national average shown on the graphic, but it still represents a substantial amount of wealth tied up in residential real estate.
For longtime Las Vegas homeowners in particular, the amount of equity accumulated could be considerably different from what they might expect.
But remember: $296,000 is a statewide average.
It doesn’t tell us what your home is worth or how much equity you have.
What Could Home Equity Mean for You?
Knowing your approximate equity position can be useful even if you aren’t planning to sell your home today.
A homeowner might be considering selling and purchasing another property, downsizing, relocating, buying an investment property, or simply planning for the future.
Understanding the current value of your home gives you another piece of information for those decisions.
Your home may be worth considerably more—or less—than an online estimate suggests. That’s why looking at the local Las Vegas real estate market and comparable properties can be valuable.
Your Home Is an Asset
We often think about stocks, retirement accounts and savings when discussing personal assets.
But for many families, their home represents a significant portion of their net worth.
The equity numbers in this Keeping Current Matters graphic are a good reminder of that.
And unlike the balance on a monthly investment statement, homeowners may not regularly receive an updated assessment of what their property could actually be worth in today’s market.
That can make it easy to underestimate how much equity has accumulated.
What Is Your Las Vegas Home Worth?
This is where Alpha II Realty can help.
We can perform a Comparative Market Analysis (CMA) of your property using current local real estate information, recent comparable sales, competing properties, neighborhood conditions and other relevant factors.
The purpose isn’t simply to give you a number.
It’s to help you better understand where your home fits in today’s Las Vegas real estate market.
Once you have an estimate of your home’s current market value, you can compare that with your mortgage balance to get a better understanding of your potential equity position.
Ask Alpha II Realty About Your Home
Alpha II Realty has been serving the Las Vegas Valley since 1981. Whether you’ve owned your home for three years or thirty years, you may be surprised by how much its value—and your equity—has changed.
If you’ve been wondering:
“What is my home worth?”
Let us research it.
Alpha II Realty can provide an analysis of your home’s value and discuss what’s currently happening in your specific Las Vegas neighborhood.
Contact Cristine Bullard, Broker, with Alpha II Realty to learn more about your home’s potential value and the Local Las Vegas Real Estate Market.
Source: Graphic reviewed through Keeping Current Matters. Home-equity data source identified on the graphic: Cotality. The figures shown are averages and do not represent the value or equity of any specific property.