Sell or Stay? The Smartest Ways to Use Your Home Equity in 2025

Meta Description: Home equity is at an all-time high! Should you sell or stay? Discover how to make the most of your equity in 2025 and achieve your financial goals. 

What Is Home Equity, and Why Does It Matter?

Simply put, home equity is the difference between your home’s current value and what you still owe on your mortgage.

Here’s the big picture: According to CoreLogic’s latest report, U.S. homeowners with mortgages saw their collective equity grow by $425 billion over the past year—bringing total equity to an astounding $17.5 trillion.

While growth may slow in 2025, equity levels remain historically high. That means this is still a pivotal time to decide how to best utilize your equity.

 Should You Sell?

 Selling your home might make sense if you’re ready to:

1. Cash In on Your Equity Gains

Over the past five years, median home prices have surged by 50%. If you sell now, you can turn that equity into cash to fund your next chapter—whether it’s buying your dream home, paying off debt, or investing.

2. Downsize or Relocate

If your current home no longer fits your needs, your equity can help you afford a new space that works better for your lifestyle. Whether it’s downsizing to save on costs or relocating for new opportunities, your home’s value can fund the move.

3. Avoid Future Market Shifts

While home prices are still growing, rising inventory and affordability challenges could impact future equity gains. Selling now could help you lock in today’s profits.

Should You Stay? 

On the flip side, staying put might be the smarter choice if you:

1. Want to Keep Building Equity

Even with slower price growth, staying in your home allows you to build equity over time through mortgage payments and appreciation.

2. Plan to Tap Into Equity Strategically

Instead of selling, consider options like a home equity loan or HELOC. These tools can fund renovations, consolidate debt, or support other financial goals at lower rates than traditional loans.

3. Prefer Stability

If you love your home and aren’t ready to navigate the housing market, staying put lets you enjoy stability while continuing to grow your investment.

 Key Questions to Ask Yourself

When deciding whether to sell or stay, consider:

- What are my financial goals?

- What is the housing market like in my area?

- What are the costs of moving?

Whether you choose to sell or stay, your home equity is a powerful asset. Selling can provide immediate financial freedom, while staying allows you to continue building long-term wealth.

Curious how much equity you’ve built? Let’s find out! We’re always here to help, you can book time with me here: https://calendly.com/shellyoneil