If you’ve seen recent headlines about home prices softening or the housing market slowing down, you might be wondering: What does that mean for my home’s value?
The good news? Even with price moderation in some markets, most homeowners are still significantly ahead — and that’s all thanks to home equity.
Whether you're thinking about selling, buying, or just curious about your current position, understanding how equity works in today’s market can help you make smart, confident decisions.
💡 How Do Home Prices and Equity Work Together?
Home equity increases when property values rise and slows when prices stabilize — but even when appreciation slows, most homeowners maintain their equity gains.
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Home equity is the difference between your home's current market value and your remaining mortgage balance.
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During 2020 and 2021, record-low inventory and intense buyer demand drove prices — and equity — to historic highs.
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Recently, as inventory increased, price growth has moderated — but that doesn’t mean values are dropping across the board.
Takeaway:
Even if the market is rebalancing, you're still holding onto years of equity growth.
📈 How Much Have Home Values Increased Since 2020?
Nationwide, home prices have risen over 45% since March 2020, according to Zillow — meaning homeowners have built substantial equity during that time.
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Even in cities with recent price dips, declines average around 4% — not enough to offset the huge gains made earlier.
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A home bought for $400,000 in 2020 could now be worth $580,000+.
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That’s a six-figure equity jump for many homeowners — and a rare opportunity to leverage wealth.
Takeaway:
The gains from the past five years still far outweigh any recent softening.
Wondering How Much Equity You’ve Gained?
📊 Let us run the numbers for you.
Most homeowners are surprised to learn how much equity they’ve built — and what it makes possible.
Whether you’re thinking about selling, refinancing, or planning your next move, a custom Home Equity Report can help you understand your position in today’s market.
📞 Contact Brian White today for a free, no-obligation equity review.
🧮 What Does This Mean for Your Equity?
If you bought your home more than a few years ago, you’re likely sitting on record levels of equity — giving you real financial options.
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According to the Federal Housing Finance Agency (FHFA), every U.S. state saw home price growth over the last five years.
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Even if price growth has slowed, your previous gains still count.
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Your equity can be tapped for:
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A move-up or downsizing purchase
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Renovations or upgrades
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Investing or paying off higher-interest debt
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Takeaway:
Equity is your financial runway — and now is a great time to see how far it can take you.
📉 Will Home Prices Drop Further in 2025?
Major price declines are unlikely. Experts predict continued market stability, with regional differences depending on supply and demand.
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Jake Krimmel, Senior Economist at Realtor.com, states:
“The slight recent declines in aggregate value and total home equity are not cause for concern... large price declines nationally are extremely unlikely in the near term.”
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Buyer demand remains strong in many areas.
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Inventory is still well below historical norms, helping to sustain home values.
Takeaway:
This is not a crash — it's a normalization after years of record-setting growth.
🚀 What Can You Do With Your Equity?
You can use your equity to move, improve, or invest — turning years of appreciation into new possibilities.
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Buy your next home with a larger down payment, reducing your monthly costs.
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Refinance (when the time is right) to access cash for upgrades or consolidation.
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Use equity for wealth-building, such as purchasing a second property or funding major life expenses.
Takeaway:
Equity gives you freedom. Use it wisely to shape the next chapter of your life.
🧠 Quick Recap
| ✅ Question | 💬 Answer |
|---|---|
| Has my home lost value? | Some growth has slowed, but values are holding or slightly increasing. |
| Do I still have equity? | Very likely — especially if you’ve owned for 3+ years. |
| Can I use that equity now? | Yes — for a move, renovation, investment, or financial planning. |
| Should I be worried about price drops? | Experts don’t expect significant declines in 2025. |
🙋 Frequently Asked Questions
Q1: How do I calculate how much equity I have?
A: Subtract your mortgage balance from your current market value. We’ll gladly provide a free, accurate Home Equity Report.
Q2: Should I wait for prices to rise again before I sell?
A: With current equity levels and buyer demand holding steady, now may be a strategic time to sell.
Q3: What if I bought recently?
A: You’ve likely still built equity — and with time, you’ll continue to gain. Many recent buyers are ahead thanks to even modest price appreciation.
Q4: Can I use my equity for something other than buying a home?
A: Yes — you can access equity for home improvements, education expenses, debt payoff, or other major investments.
Let’s Build Your Future Together
Even in a shifting market, homeowners are still winning — holding onto record amounts of equity that can unlock meaningful opportunities.
📈 Whether you want to sell, refinance, or just get clarity on your financial picture, we’re here to help.
📞 Let’s talk. Let’s plan. Let’s build your future together.
👤 About the Author
Brian White is a top-ranked REALTOR® and founder of the BlueFuse Group at eXp Realty. With $200M+ in career sales, Brian brings faith-driven leadership and a data-forward strategy to every client experience. He’s helped hundreds of families buy and sell with confidence through proven systems like the Signature Sales Strategy and BLUEFUSE Buyer Blueprint.
Connect with Brian today to get expert guidance, clear communication, and real results.
📍 bluefuserealty.com | 📧 [email protected] | 📞 817-646-4244
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