Why Your Home Equity Still Puts You Far Ahead

With so many headlines talking about cooling home prices, it’s normal to wonder what that means for your home’s value. But here’s the real story:

Most homeowners, especially in Connecticut, are still significantly ahead thanks to the equity they’ve built.

And that’s true even in markets where prices have softened slightly.

As a local Realtor in Connecticut, I see this every day with clients who are surprised at how much equity they've gained over the past few years.

How Home Prices and Equity Really Work

Your home equity rises and falls alongside home values.

• When prices appreciate, your equity skyrockets.

• When price growth cools, equity growth slows as well.

And that’s exactly what we’ve seen recently.

After the unprecedented home price surge of 2020–2021, driven by record-low inventory and intense buyer demand. The market had no choice but to normalize. More homes have been listed over the past year, so price growth has eased. But that does not mean you've lost ground.

Putting It All into Perspective

Even with slight price moderation in some areas, the vast majority of homeowners still have substantial equity gains compared to just a few years ago.

Here’s the data:

• Zillow reports that home prices have risen 45% nationwide since March 2020… a massive jump!

• Even in the metros seeing the biggest declines, the average dip is only around -4%.

• And most markets, including many parts of Connecticut, are still appreciating, just at a slower, healthier pace.

Those small declines can't erase years of price growth. Homeowners who’ve held onto their property through the pandemic years are still up in a big way.

FHFA data confirms this too: every single state has experienced price appreciation over the last 5 years. That means homeowners everywhere, especially here in Connecticut, have built meaningful equity that puts them in a powerful financial position.

This is exactly what I see working with clients through Joseph Malerba Real Estate, eXp Realty. Whether they’re downsizing, moving up, or relocating, the equity they've gained is creating real opportunities.

What This Means for Connecticut Homeowners

If you’ve owned your home for more than a few years, chances are you’re sitting on a level of equity many people could only dream of before the pandemic. And if you're thinking about selling, that equity can help you:

• Boost your buying power

• Reduce your next mortgage payment

• Move to a home that better fits your lifestyle

• Strengthen your long-term wealth-building strategy

And in case you're worried about future declines, here’s the outlook from Jake Krimmel, Senior Economist at Realtor.com:

“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 . . .”

What we’re seeing now isn’t a crash, it’s a market that’s settling into a healthier, more sustainable rhythm. And even with moderation, homeowners remain in a very strong position.

Here’s What You Should Do Next

Even with a cooling market in some areas, homeowners today are still sitting on near-record levels of equity.

If you’re curious how much equity you’ve built or how much your home may be worth in today’s Connecticut real estate market, I’m here to help!

Let’s talk through your numbers and explore your options.
You may be much farther ahead than you think.

— Joseph Malerba Realtor | Joseph Malerba Real Estate, eXp Realty