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 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 changed? Let’s break it down.
The Rapid Rise of the Past 5 Years
Home prices increase 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 reap the benefits of those massive increases.
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:
Let that sink in if you’ve been holding off on selling because you were worried about buying your next home at today’s rates and prices. It may be 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 looks like.
How To Find Out What Your House Is Worth
While a percentage is excellent, you probably want more specific numbers. The only way to get an accurate look at what your house is 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 consider your local market. Like, is inventory still low where you live? That may drive prices higher, and faster. Or maybe you’ve done renovation 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 estimate of its value possible. Only they have the data and expertise to find your actual 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.
