Homeowner Wealth Increases Through Growing Equity This Year
Building financial wealth and stability in Charleston, SC remains one of the top reasons we choose to own a home here, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the Urban Institute, Home Ownership is Affordable Housing, author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments:
“The principal portion that reduces the loan balance builds the homeowner’s equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.”
But home equity – the difference between the value of your home and what you currently owe – isn’t just built through your monthly principal payments. Home price appreciation plays a vital role in growing your equity and, ultimately, your wealth. In May 2021, Charleston home prices were up 30.1% compared to last year, selling for a median price of $436K. On average, homes in Charleston sell after 48 days on the market compared to 72 days last year.
As Freddie Mac explains:
“Homeownership has cemented its role as part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This ‘wealth’ is built, in large part, through the creation of equity…Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
Homeowners Continue To See Equity Increase
CoreLogic recently published their latest Homeowner Equity Insights Report, and it shows continued growth in equity amidst record home price appreciation. The report provides several key takeaways, all of which point to rising wealth for homeowners:
The average equity gain of mortgaged homes during the past year in South Carolina is $22K
The current average equity of mortgaged homes is greater than $216,000
There was a 6% increase in total homeowner equity over the past year
Total U.S. homeowner equity has reached nearly $1.9 trillion
Here, you can see the equity gains by state:
Equity Provides Homeowners with Flexibility
In addition to being a critical tool in building wealth, a homeowner’s equity also provides significant flexibility. When you sell your house, the accumulated equity comes back to you in the sale. Recent increases in home equity coupled with record-low mortgage rates mean it could be the perfect time for homeowners looking to make a move.
Home equity has always been a powerful wealth-building tool, and homeowners, especially in Charleston, SC continue to see their financial stability increase. Contact us today to better understand how much equity you have in your current home or if you’re ready to take the next step in building your savings as a homeowner.
1467 Crane Creek Drive
MLS# 21016892 - Residential
Mount Pleasant, SC
Located by a lovely pond in the Carolina Park community, this gorgeous home has lots to offer! An inviting two-story exterior with double front porches greets you as you step inside to find great features including a bright and open floor plan, double crown molding, wainscoting, and upgraded laminate floors. To the left of the foyer, you'll find glass French doors leading to the office/formal living room with access to the front porch. To the right of the foyer, you'll find the formal dining room with access to the front porch and to the butler's pantry. Pass through to the gorgeous kitchen with abundant cabinetry, quartz countertops, a subway tile backsplash, stainless steel appliances, a walk-in pantry, and an eat-in area looking out to the pond and backyard. From the back porch, you can view the generously-size fenced-in backyard and access the detached two-car garage. The lovely family room is a comfortable space that looks out to the back porch. Head to the second level to discover a roomy loft space with French doors leading to the porch. Double doors lead to the owner's suite with access to a private balcony, two large walk-in closets, and an en-suite with a large soaking tub, a tiled step-in shower, and dual vanities. Two additional bedrooms with walk-in closets and one with access to the porch, a full bathroom, and a laundry room with storage cabinets can also be found on this floor. Head to the third floor to find a large flex space/additional bedroom with a full attached bathroom and a walk-in closet. Additional upgrades and features include iron spindles on all the stair cases, bead board in the dining room and formal living room/office, recessed lighting, foam insulation in the third level attic, sheet-rocked garage, and a separate thermostat on each floor. Carolina Park is a master-planned community that offers a 20 acre lake, a zero-entry swimming pool, a club house, a pavilion, a fenced-in park, and walking trails. This great community is approximately 6.7 miles to the shopping and dining at Mt Pleasant Towne Centre, approximately 10.3 miles to Isle of Palms, approximately 12.7 miles to Sullivan's Island, and approximately 15.5 miles to historic downtown Charleston. Book your showing today!