Did you know that the average home owner saw their property’s value rise $46,000 per year over the past five years? Today we’ll look at ways you could put that recent increase in equity to further use.
The five years since 2020 have seen plenty of action.
From the pandemic (let’s not go there again), through to a change in government, and some notably wild weather events around the country, there’s been no shortage of highs and lows.
Chances are, you’ve seen a few changes of your own. Maybe a new career or the arrival of a new family member.
Through it all, your home’s value has likely been steadily rising in the background.
Gains of 39% in five years
The latest data from CoreLogic shows home values nationally have surged 39.1% over the past five years to a median value of $820,331.
Translated to hard coin, that means an extra $230,000 has been added to the median home value.
But here’s the thing.
While a 39% gain is impressive, it’s actually pretty modest compared to the percentage gains of earlier periods.
In Sydney, for instance, home prices grew 78% in the years between 1998 and 2003.
In Melbourne, home values jumped 79.5% in the early 2000s.
Meanwhile, cities such as Brisbane, Adelaide, Perth, Hobart and Canberra experienced their largest five-year gains through the mid-2000s, with values across these markets roughly doubling over the period.
What’s different this time around is that home values are higher than in the past.
That means while the latest increase has been “mild in percentage terms”, according to CoreLogic, the $230,000 average dollar value of current price gains “far outperforms historic peaks”.
For example, by comparison, the dollar rise seen over the five-year 80% national increase to December 2003 was roughly $90,000 less, at $140,000.
Putting equity to work
An increase in your home’s value can be worth more than bragging rights at your next BBQ.
It could be that you have considerable home equity. That’s the difference between your home’s market value and the balance remaining on your home loan.
Home equity is more than just a number. It can also be a valuable resource.
It may be possible, for example, to put home equity to work to achieve personal goals – anything from completing renovations, buying an investment property, refinancing to a lower interest rate, or just taking a well-deserved family holiday.
To find out how to tap into your property’s equity, get in touch with us today and we’ll run you through the numbers.
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