Home Real Estate Philly-area homeowners are building wealth quickly, thanks to rising prices

Philly-area homeowners are building wealth quickly, thanks to rising prices

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Rising home prices can be a challenge for aspiring buyers, but homeowners are enjoying the increasing values of their homes. For most families, owning property is the primary way they build wealth.

In the metropolitan area that includes Philadelphia, Camden, and Wilmington, an owner of the typical home gained more than $110,000 in equity if that person lived in the house for five years, according to an analysis the National Association of Realtors released this month. Homeowners build equity, or housing wealth, through price growth and paying off the mortgage. It’s the difference between how much a home is worth and what a homeowner owes.

» READ MORE: New type of home equity loan caters to major renovation projects

Home equity gives repeat buyers a leg up in the housing market compared with most first-time home buyers who don’t have cash to compete. Homeowners also can borrow money against their home’s equity to complete repairs or renovations, pay…

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