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!
How To Find Out What Your House Is Really Worth
It’s really easy, just follow this link!
This link to my site will give you a range of your property’s value on paper given the available data for comparable sales in your neighborhood, but it does not account for specific upgrades or features that you’ve added.
Also, the map above gives you the average appreciation rate by state, but it doesn’t take our local market into consideration; like, is inventory still low in your neighborhood? This could drive prices higher, and more rapidly as well.
Bottom Line
Home values have climbed – maybe more than you expected. If you are curious about what your house is worth in today’s market, reach out anytime. And lastly, the “Your Home’s Value” page on my site is also a great tool to check the approximate value of any property that is not on the market, but where you can see yourself living. Have fun!
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