How Your Equity Can Grow over Time

Nationwide, we have seen a tremendous amount of growth in the equity of our homes over the past 2 years.  In Summit County, Colorado, homeowners saw a 24% jump in equity in 2021.  But not every year is like that, in fact, there are a few years in our history where we have seen our values decrease a bit.  But, just like the stock market, investing in real estate and letting that equity build over time is a great way to increase your wealth. Just remember, to find out how much equity you have in your specific home, you’ll want to get a professional equity assessment from a trusted real estate advisor.  If you are curious what your home is worth, even if you don’t plan to sell right now, call Nelson Walley Real Estate and let us help to make sure you are insured properly and that you have a good number to work with for estate planning purposes.

How Your Equity Grows

Let’s start by establishing how you build equity in your home. While price appreciation is clearly a factor that can help boost your equity, you also build equity over time as you pay down your home loan. NAR explains:
“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”

Only you can control your mortgage payments and gain more equity.  Did you know that making 1 additional mortgage payment per year (applying it to your principal) will reduce the term of your loan from a 30-year loan to 22 years?

But how about price appreciation?  To see how prices have appreciated in Summit County over the years, take a look at this graph:

That is an average of 7% per year over time.  
Now, let’s put that into perspective with a real example of an average Summit County property.
Let’s say you purchased a property in Summit County for $250,000 in 1999.  For the purpose of this example, we will assume typical maintenance and upgrades to stay current over the next 23 years, but do not include any major remodels.
In 1999, the value of your home is $250,000.  
By 2005, the value of your home would have jumped to $367.277.
By 2010, the value of your home, even with rapidly decreasing appreciation rates, would be at $516,244.
By 2015, the value of the home had dropped to $508,698, but still more than $258,000 over your initial investment.
In 2020, the value of that property jumped to $840,617 and after our incredible year in 2022, the value of your home would be $1,040,012.

Here's what that equity growth looks like:

These numbers are impressive and certainly enough to help you fuel a move into your next home, but they’re not a promised amount. Remember, your own equity gain will be different. It depends on how long you’ve been in the house, your home’s condition, any upgrades you’ve made, where you are located in Summit County, and much more.

If you want to find out how much equity you have, partner with Nelson Walley Real Estate for an equity assessment on your home. We can provide an expert opinion on what your house is worth today and how the equity you’ve gained over time can help you when you purchase your next home. Or, we can help make sure that you are insured properly….especially during wildfire season.

Bottom Line

If you’re thinking about selling your house and making a move, home equity can be a real game-changer, especially if you’ve been in your current home for a while. If you’re ready to find out how much equity you have, let’s connect.


We cherish the relationships we make in helping our clients realize their goals. Whether buying or selling a home your best interest is our top priority.

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