One of the biggest financial perks of homeownership is building equity over time. Right now, homeowners across Central Arkansas—and the rest of the country—are sitting on record amounts of it.
Let’s explore how this equity could transform your ability to buy your next home, possibly even in cash, and why now might be the perfect time to make your move.
What Is Home Equity?
Home equity is the difference between your home’s current market value and how much you still owe on your mortgage. For example, if your home in Conway, Little Rock, or any other Central Arkansas area is valued at $300,000 and you owe $150,000, your equity would be $150,000.
Why Is Equity a Game Changer for Sellers?
Recent data shows how significant today’s home equity truly is. Nationwide, more than two out of three homeowners have either fully paid off their mortgage or have at least 50% equity in their homes.
To put this in perspective, CoreLogic reports that the average homeowner has $311,000 in equity built up. While the numbers may vary locally, Central Arkansas homeowners are also benefiting from this surge in equity—especially with rising home values in sought-after neighborhoods like Maumelle, Benton, and Cabot.
This level of equity can give you a significant advantage if you’re planning to sell. It’s also part of why 26% of recent buyers nationwide were able to purchase their next home in cash.
The Benefits of Using Equity for Your Next Move
Imagine buying your next home in Central Arkansas outright—with no mortgage, no monthly payments, and no concerns about interest rates. Your home equity might just make that possible.
Even if you don’t have enough equity to buy a new home entirely in cash, it can still provide a larger down payment. That means:
- Lower monthly payments.
- A better interest rate.
- The ability to bid competitively in the market.
How To Calculate Your Equity
Curious how much equity you’ve built? A local real estate agent can help you with a professional equity assessment report (PEAR). This will give you a clear picture of how much your home is worth in today’s market and how much equity you have to put toward your next home.
Whether you’re considering a larger home in Bryant or a smaller, low-maintenance home in Sherwood, knowing your equity gives you the confidence to take the next step.
Bottom Line
Homeowners across Central Arkansas are in an excellent position with the amount of equity they’ve built. Whether you’re ready to downsize, upgrade, or relocate, that equity could be your ticket to buying your next home in cash or with a significant down payment.
If you’re curious about how your home’s equity can fuel your next move, let’s connect. Together, we’ll uncover your options and help you make the most of your hard-earned equity.
