Why Your South Jersey Home Equity Still Puts You Way Ahead
Seeing headlines about falling home prices might worry you about your own home’s value. Let’s clear up what this really means for South Jersey homeowners.
Even with minor price dips in some local markets, the data shows you’re likely still way ahead. This is all thanks to the home equity you’ve built up.
How Home Prices and Equity Connect
Home equity moves in step with home prices. When prices climb, equity grows. When prices cool slightly, equity growth slows too. This pattern has played out in our region recently.
After the record home price surge in 2020 and 2021, some cooling was bound to happen.
Back then, homes for sale hit record lows across our area. This caused values in places like Pitman and Mount Laurel to jump as buyers fought over limited inventory.
But prices couldn’t keep rising at that fast pace forever. The market needed to balance out, and that’s what we’re seeing now.
As more homes have come on the market this year, price growth has slowed. This means equity gains have too. But this doesn’t mean you’ve lost ground in our market.
What This Means For Your Home
You likely still have much more equity than you did just a few years ago. This puts you in a strong position if you want to sell your Mullica Hill or Voorhees home. Here’s the data to back this up.
According to research from Zillow, home prices have risen a remarkable 45% nationwide since March of 2020. That’s a huge jump.
In most towns, from Burlington County to Cumberland County, prices continue rising – just more slowly. Even in areas where prices have dipped slightly, the average decrease is only about -4%.
What does this mean? In most local areas, prices are still climbing, so there’s no cause for worry. But even in towns where prices have cooled slightly, the 5-year gains far outweigh those small dips.
In simple terms, these modest dips can’t erase years of growth. South Jersey homeowners who’ve owned their homes for several years are still way ahead. This holds true across our region.
Data from the Federal Housing Finance Agency (FHFA) helps show this clearly. Let’s look at state-level data. Every state has seen price increases over the last 5 years. This means homeowners in New Jersey have much more equity than they did just 5 years ago (see graph below):
If you’ve owned your home for more than a few years in our region, you’ve likely built the kind of equity many people only dreamed about before the pandemic. When you sell, you can use this equity to help you downsize or move up to another area.
If you worry prices might crash and hurt your equity more, here’s what Jake Krimmel, Senior Economist at Realtor.com, says:
“The slight recent declines in aggregate value and total home equity are not cause for concern . . . Although the market is coming into better balance, large price declines nationally are extremely unlikely in the near term . . .”
The price moderation we’re seeing isn’t something to fear. It signals a market finding its balance after years of unsustainable growth. After several years of major price gains, most homeowners in Williamstown and across South Jersey are still in very strong positions.
Bottom Line
Even with some price cooling in certain areas, South Jersey homeowners still hold near-record amounts of equity.
Wondering how much equity you have in your home? Let’s connect to review your specific situation.
You might be shocked by what your South Jersey home is actually worth today.
