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Opinion
Alexis Leondis

How to Safely Cash In on Your Home Equity Windfall

Soaring prices in the housing market have bestowed new wealth on owners. Here's how you can tap into that without regretting it later.

A red-hot housing market has boosted homeowners’ wealth. 

A red-hot housing market has boosted homeowners’ wealth. 

Source: Bloomberg

You may not feel it yet, but if you're an American homeowner you're probably a good bit richer after the dizzying run-up in housing prices last year. But how do you tap into your newfound wealth? And should you?

U.S. homeowners gained an average $55,300 in their home’s value (minus their mortgage) in 2021. In some especially hot cities, such as Denver and Miami, the increase was close to $80,000, while in high-price Los Angeles and San Francisco, it was more than $110,000.