Will Home Equity See the Same Rate of Growth in 2025?
While experts generally agree that equity will see some growth, the exact amount is debatable
Nov. 22, 2024
Angelov / stock.adobe.com
Home equity grew exponentially in 2024, leading many to wonder what 2025 has in store for homeowners.
Homeowners with mortgages saw their equity grow by $1.3 trillion over the past year. This is an 8% increase compared with the previous year, and, by Q2 2024, the average homeowner held about $319,000 in equity. With equity growing over the course of 2024, CBS News spoke with housing market experts to get an idea of what 2025 may have in store for mortgage holders. While many experts agree equity will continue to increase, the exact amount remains unknown.
"We believe average home equity should rise in 2025," says Roger Ashworth, head of research and data analytics at investment platform Saluda Grade. "Most estimates for home price appreciation are in the low- [to] mid-single digit area. Holding all things equal, if home prices appreciate, homeowners either with or without a mortgage should build equity."
Ashworth notes that most mortgages are 30-year, amortized, fixed-rate, level-pay loans with balances that should decrease over time — contributing to additional home equity.Read more
