Home Equity Impact

Important Impacts Of Home Equity: 2 Most Crucial Ones To Know


By: Ian Golightly MBA, Realtor

According to CoreLogic data, equity continues to rise to help homeowners secure a much more stable financial future for themselves and their families. Even though in 2020, the pandemic created uncertainty for many industries, it’s still looking positive for the real estate market, according to experts that expect home prices to continue to rise. When home prices go up, equity gains will keep accelerating upward for homeowners.  Black Night INC. reported:

“The annual percent change in the overall median existing SFH* price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.”

*SFH – Single Family Home

The increase in equity will help homeowners overcome economic distress causes like the COVID-19 pandemic. However, it’s vital to discuss the two crucial impacts of an increase in equity among homeowners.


Home Equity Allows Homeowners To Have MORE Options To Buy A New Home:


Ever since the 2020 pandemic, it has taken a toll on many people’s emotional stability. Many factors that have contributed are lockdowns, virtual schooling, quarantine requirements, social distancing from friends and family, etc. These factors have made many homeowners re-evaluate their home requirements of what a home should provide. Having equity in your current home offers you a better opportunity to upgrade with a move-up or build the perfect home from scratch.

The equity in your current home can make it possible for you to make that move right now.


Home Equity Helps Future Generations:

Home equity growth results in wealth, which can impact future family generations. An important statement came from The Federal Reserve in an addendum from their recent Survey of consumer finance.’

“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”



If you’re thinking about having a stable financial future, obtaining more equity in your home might be the perfect strategy. Being a homeowner and getting more equity has some significant pros in your financial status. For many people, the largest single investment besides retirement is their home. The direct correlation of investment appreciation increase and financial options increase allow homeowners to have opportunities financially.