Four Smart Ways to Use Your South Jersey Home Equity
South Jersey homeowners are sitting on a gold mine of equity. But what does that really mean for you? Let’s break down how this powerful asset can work in your favor right here in our region.
Your equity isn’t just a number on paper. It’s a practical financial tool that can help you make your next big move in Riverton, Haddon Twp, or anywhere across South Jersey.
How Much Equity Does the Average Local Homeowner Have?
Here’s how equity builds up. You pay down your mortgage each month. Home values rise over time. The portion you own free and clear grows steadily. That’s your equity.
According to data from the Census and ATTOM, two-thirds of homeowners have a substantial amount of equity today.
39% own their homes outright without any mortgage debt. Another 27% have at least 50% equity in their properties (see chart below):
This matters for South Jersey homeowners. In real dollars, Cotality reports the typical homeowner has almost $300k in equity right now.
This amount varies across our region. Homes in Medford Lakes and Wenonah tend to have higher equity levels. Even in more affordable areas like Oaklyn and Maple Shade, homeowners have built substantial equity due to our stable market.
Smart Ways to Use Your South Jersey Home Equity
1. Move to a Home That Fits Your Current Needs
Life changes, and so do housing needs. Your Voorhees starter home might feel cramped with growing children. Or perhaps your large Sewell property has more rooms than you need now.
Either way, your equity serves as a powerful down payment on your next home. Many South Jersey clients use this equity to make smooth transitions. Some have even purchased their next home in cash, especially when downsizing from a larger property.
2. Update Your Current Home
Not ready to move? Consider reinvesting in your current property. Kitchen updates in South Jersey homes tend to offer strong returns. Bathroom renovations also rank high on the value list.
Before starting any projects, talk with a local agent about which updates make the most sense. The preferences in Pitman differ from those in Mount Laurel. Local expertise ensures you choose upgrades that boost future resale value.
3. Fund Important Life Goals
Your equity can help achieve major life goals beyond housing. We’ve seen South Jersey clients tap equity to launch small businesses. Others use it to boost retirement savings or cover college tuition.
Some local homeowners are even using their equity to help family members enter our competitive market. This creates a powerful ripple effect that keeps families close in the region.
4. Provide Financial Security During Challenges
If you face financial difficulties, your equity offers a safety net. Many South Jersey homeowners who experience hardships can sell their homes and still walk away with substantial proceeds.
This provides a far better option than facing foreclosure. Our stable regional market means even during challenging times, you have more options than homeowners in more volatile areas.
Steps to Take Next
If you’re thinking about using your South Jersey home equity:
- Step 1: Contact a local agent for a current equity assessment on your specific property.
- Step 2: Meet with a financial advisor to discuss the best way to use this asset.
When tapping into your equity, remember some important guidelines. Maintaining at least 20% equity provides financial security and better loan terms. This is a key lesson many didn’t know during the 2008 crash.
The good news is most South Jersey homeowners have substantial equity that exceeds this 20% threshold. According to data from the Intercontinental Exchange:
“As of Q4, mortgage holders have $17.3T in home equity, including $11.2T in tappable equity – accessible via cash-out refinances or home equity lines while maintaining 20% equity in the property . . . “
Bottom Line
Your South Jersey home equity represents one of your largest financial assets. Whether you’re planning a move within the region, updating your current property, or working toward other goals, this equity gives you options.
Our stable local market means your equity likely continues to grow steadily. Connect with a financial advisor to explore how this valuable resource can help achieve your goals.
What would you do with your home equity if you tapped into it today? Buy a shore house? Start a business? Help a family member?
