Over the past few years, you’ve probably seen countless headlines about rising home prices. But have you ever considered what that means for your own property?
Home values have surged dramatically over the past five years—far more than usual. If you’ve been thinking about selling, this could mean a bigger-than-expected payday. But just how much has your home’s value really changed? Let’s break it down.
The Rapid Rise in Home Prices
Historically, home prices increase by about 2-5% per year. However, during 2021-2022, the market saw double-digit appreciation. At the peak, home prices surged 20% or more nationwide due to high demand and limited housing supply.
While the market has since stabilized, homeowners are still benefiting from those extraordinary gains. Your property has likely gained far more value than it typically would in such a short period—translating to increased wealth for you.
How Much Have Home Prices Increased?
Data from the Federal Housing Finance Agency (FHFA) shows that, on average, home prices have risen nearly 60% in just five years. Here’s a breakdown by state to give you a clearer picture:
[Insert interactive or updated map showing home appreciation by state]
If you’ve been hesitant to sell because of today’s interest rates or housing costs, consider this: your home equity could help bridge the affordability gap and put you in a great position for your next move.
And if you’ve owned your home for even longer? Your property’s value has likely grown even more, stacking the last five years of record gains on top of previous years of appreciation.
How To Determine Your Home’s True Value
While national and state-level statistics provide a general idea, your local market conditions play a huge role in determining your home’s actual value. Here’s why working with a real estate professional is essential:
- Market Trends: An agent knows if inventory is low in your area, which could drive prices even higher.
- Home Upgrades: Have you renovated your kitchen or added a new bathroom? These factors significantly impact your home’s worth.
- Neighborhood Insights: Some neighborhoods appreciate faster than others—an agent can provide hyper-local data.
A comparative market analysis (CMA) from a real estate agent will give you the most accurate estimate based on your home’s condition, location, and current market trends.
Bottom Line
Home values have skyrocketed—possibly more than you expected. Curious about what your home is worth in today’s market? Let’s connect so you can get an expert valuation and explore your options.