If you’re a homeowner in Richmond, VA, you’ve likely watched your home’s value rise significantly over the past few years. With record-high homeowner equity, many are sitting on what feels like a financial windfall. As the 2025 housing market evolves, the question looms: Should you sell your home and capitalize on your equity, or stay put and make the most of your investment?

Here’s how understanding your home equity can guide your next steps in today’s real estate market.

What Is Home Equity, and Why Does It Matter?

Home equity is the difference between your home’s current market value and the remaining balance on your mortgage. For example, if your home is valued at $450,000 and your mortgage balance is $200,000, your equity totals $250,000.

According to the latest Homeowner Equity Insights Report from CoreLogic, U.S. homeowners gained $425 billion in equity over the past year, a 2.5% year-over-year increase. While 2025 is expected to bring slower equity growth, homeowners still have substantial opportunities to leverage this valuable financial resource.

Should You Sell Your Home in 2025?

Selling your home can be a strategic move if you want to:

1. Cash In on Significant Equity Gains

Home prices surged 50% from 2019 to 2024, with median prices rising from $272,100 to $409,000. By selling now, you can convert equity into cash to fund a new home purchase, pay off debt, or invest in other ventures.

2. Downsize or Relocate

If your current home no longer suits your lifestyle, your equity can help you afford a more fitting space. Whether you’re downsizing to save on expenses or relocating within or beyond the Richmond, VA area, your equity provides financial flexibility.

3. Avoid Potential Market Shifts

While CoreLogic projects a modest 2.3% home price increase in 2025, rising inventory and affordability challenges could affect future equity. Selling sooner rather than later may help you maximize your profit.

Should You Stay?

Staying in your home might be the right decision if you:

1. Want to Continue Growing Equity

Even with slower appreciation, regular mortgage payments and modest price gains still build equity over time, contributing to your long-term financial stability.

2. Plan to Access Equity Strategically

Consider using a home equity loan or home equity line of credit (HELOC) to fund renovations, consolidate debt, or meet other financial goals. These products typically offer lower interest rates than personal loans or credit cards.

3. Prefer Stability

If you love your current home and neighborhood in Richmond, staying put allows you to maintain stability while your property continues to appreciate in value.

Key Questions to Ask Yourself

When deciding whether to sell or stay, consider:

• What are my financial goals? Do you need immediate cash, or do you prefer long-term wealth building?

• What is the market like in Richmond, VA? Housing trends vary by region. Consulting a local expert from Don Reid Properties can help you assess your home’s value.

• What are the costs of moving? Don’t forget to account for closing costs, moving fees, and potential changes in mortgage rates when buying a new home.

Make a Confident Move with Don Reid Properties

Whether you choose to sell or stay, your home equity is a powerful tool. Selling can provide immediate financial freedom, while staying offers ongoing equity growth and stability. Ready to explore your options? Contact Don Reid Properties today to receive a personalized home equity report and expert guidance on Richmond’s dynamic real estate market.

Visit Don Reid Properties or schedule a consultation at TODAY. Let us help you turn your homeownership goals into reality!