How Much is Your Home Really Worth?

It’s interesting that most people we talk to don’t keep track of the “real” value of what, in most cases, is their largest asset – bar.  Their home.

Think of this, if you’ve lived in your home for a few years or more, chances are it’s been quietly and quickly building wealth.  That’s why we keep our current and past clients up-to-date on the value range of their home.  In the past few years, many have been surprised at how quickly their value has risen.

Today, even though the real estate market is shifting, your wealth is growing.  It's our recommendation you keep up to date on your home's worth and equity.

Home Equity – What is it?

It's the difference between what your home is worth today and what you still owe on your mortgage.  Over time, equity grows as home values rise and monthly mortgage payments are made.  We like to think of equity as your home's "Hidden Wealth."

Let's show you how it works.

Say the value of your home, after doing a valuation is $1,100,000 and the amount you owe the lender/bank is $600,000.  This would mean you have $500,000 in equity.

Your home is Probably Worth More Than You Think

Homeowners around the United States have near record home equity for two reasons

1.  Home Price Growth in the Past 5 years. 

Home prices have jumped by almost 54% nationwide between 2020-2025 (see map below). In Long Beach and the surrounding area, the average is as much as 60% (per FHFA and LA County records).

You may be hearing about how home prices are flatting out which seems to be the case in the 3^rd and 4^th quarter of 2025.  Home prices are rising, just at a much slower pace than they did in the “unicorn years” of 2021-2023.  If someone told you that some markets around the United States are starting to come down, that is true too.  Just not here in Southern California – specifically Long Beach

2.  People Are Living In Their Homes Longer

For many years leading up to the great recession of 2007-2008, the average time living in one home nationwide was 6 years.  Fast forward to today and that number is up to 10 years according to the National Association of Realtors (NAR).  See graph below:

Because we stay in our homes longer, the equity built up by the mortgage payments and upward trajectory of home values in the past 5 years have resulted in unprecedented real estate wealth.

Nationwide, NAR estimates that the average homeowner who’s had their home for over 10-years, has accumulated $201,600 in wealth from price appreciation.  In Long Beach and Southern California that number is higher since homes in our area are purchased at a much higher median price than most of the United States.

What Can Your Equity Do for You

Think of your equity as an investment that will allow you to:

·      Buy Your Next Home 
Cover your down payment or in some cases, buy your next home all cash 

·      Start Your "Dream" Business 
Your equity may be the ideal way to invest in yourself and the dream of starting a business.  Instead of getting a loan from a financial institution, you can tap into your equity to cover startup costs like equipment and marketing

·         Cross Off Bucket List Items

Take the vacation, get the education, buy the car or pursue your greatest dreams with the equity you’ve earned over the past ten years 

 ·         Renovate, Add On or Refresh Your Current Home

The equity you’ve built can be the ideal resource to tap in making your current home fit exactly 

The Takeaway

Over the past ten years your home has become much more valuable.  Online tools like Zillow Zestimate, Redfin Home value Estimator and others can provide a value range, but their numbers are often 8-20% off.

The most effective way to understand your home’s true value is to get a professional equity assessment report from a local neighborhood expert. 

If you’re even a bit curious about the value of your home, let’s chat.  We’ll do a deep dive into your neighborhood, run numbers, look at your home’s value from 4 different perspectives and provide you with detailed valuation.  We can also provide you with insight on what steps you can take to maximize value. 

The key is to walk away with confidence you know what you're home is worth today, what your equity is and all the ways it can help you moving forward.