A Drop in Equity Doesn’t Mean Low Equity⁣⭐️ If you're worried about the drop in value in your home based on recent news articles, don't be. You may see media coverage talking about a drop in homeowner equity. Equity is tied closely to home values. So, when home prices appreciate, you can expect equity to grow. And when home prices decline, equity does too.

🦄 Home prices rose rapidly during the ‘unicorn’ (Covid) years. That gave homeowners a considerable equity boost. But those ‘unicorn’ years couldn’t last forever. The market had to moderate at some point, and that’s what we saw last fall and winter. As home prices dropped slightly in the back half of 2022, equity was impacted.

Based on the most recent report from CoreLogic, there was a 0.7% dip in homeowner equity over the last year. However, the reality is, while home price depreciation during the second half of last year caused equity to drop, the data shows homeowners still have near record amounts of equity.

So even though there’s been a small dip, total homeowner equity is still much higher than it was before the ‘unicorn’ years. While homeowner equity dropped some from last year, it’s still near all-time highs.

Message me if you need personalized information on the value of your home.