Home equity has been a hot topic in real estate news lately. And if you’ve been following along, you may have probably heard in the news that there’s a growing number of homeowners with “negative equity”.

But don’t let those headlines scare you.

In truth, the headlines don’t give you all the information you really need to understand what’s happening and at what scale.

Headlines focus on short-term equity numbers and fail to convey the long-term view.

If you are deciding whether to make a move this year, remember that the average sold price in our zip code has appreciated about 57% in the last 10 years. You will likely find opportunities to cash-in on high levels of equity, particularly if you’ve owned your home for a longer period of time. Housing supply is still considerably low in DC, so now may be the time to sell your house before supply of homes for sale increases with the regular spring market trends, possibly putting negative pressure on home values.

The DC area tends to have more consistent housing demand than other cities in the United states. Instead of basing your selling decision on national news, we would be happy to discuss current market trends and long-term trends in your neighborhood.

So, what does that mean for those who purchased a home in 2022?

It’s important to remember, owning a home is a long-term investment, not a short-term play. When headlines focus on the short-term view, they’re not necessarily providing the full context.

Typically speaking, the longer you stay in your home, the more equity you gain as you pay down your loan and as home prices appreciate. With recent market conditions, you may not have gained significant equity right away if you owned the home for just a few months. But it’s also true that many homeowners who recently bought their house are unlikely to be looking to sell quite yet.

Bottom line

If you want to find out how much equity you have, contact our team for an equity assessment on your home. We can provide an expert opinion on what your house is worth today and how the equity you’ve gained over time can help you when you purchase your next home.