Homeowners who have owned their homes for several years or purchased them at a lower price point have likely seen a significant increase in equity due to rising home prices. This equity gain is the difference between the current market value of the home and the outstanding mortgage balance.
In recent years, home price appreciation has been strong, which has helped boost homeowners' equity positions. However, it's worth noting that home price growth has slowed somewhat in some areas, and it's possible that it may level off or even decline in the future.
Nevertheless, homeowners who have built up equity in their homes have a valuable asset that can provide financial flexibility and stability. They may be able to tap into their equity through home equity loans or lines of credit, or by selling their homes and downsizing or relocating to a lower-cost area.
Overall, homeowners who have seen their equity grow over the past few years have reason to feel financially secure and may have more options for managing their finances in the future.