Published November 5, 2025
Why Massachusetts Homeowners Are Still Way Ahead Thanks to Home Equity
Why Your Massachusetts Home Equity Still Puts You Way Ahead
If you’ve seen headlines about home prices dipping in Massachusetts, it’s natural to wonder what that means for your own home’s value. Here’s the truth — even with minor price adjustments, most MA homeowners are still way ahead thanks to their home equity.The Relationship Between Home Prices and Equity
Home equity moves alongside home prices. When prices rise, your equity grows. When prices cool slightly, your equity gains slow — but rarely reverse.After the record-setting surge of 2020 and 2021, some cooling in the Massachusetts housing market was expected.
Low housing inventory pushed home values — and homeowner equity — to record highs. Now that more homes are hitting the market, price growth has moderated, but homeowners are still in a strong position.
Putting It into Perspective
You likely have more equity today than ever before. According to Zillow, home prices nationwide have risen 45% since March 2020. Even in the few MA markets that saw small dips, the average decline is only around 4%, which hardly makes a dent in the massive growth homeowners experienced over the last five years.Data from the Federal Housing Finance Agency (FHFA) shows that every state, including Massachusetts, has seen significant price appreciation over the past five years — meaning your home is worth much more now than before the pandemic.
If you’ve owned your Massachusetts home for several years, you’ve likely built impressive equity that can help you move up, downsize, or invest in your next chapter.
Expert Insight
According to Jake Krimmel, Senior Economist at Realtor.com:“The slight recent declines in aggregate value and total home equity are not cause for concern... Large price declines nationally are extremely unlikely in the near term.”The moderation we’re seeing isn’t a downturn — it’s a sign of a healthier, more balanced housing market.
Bottom Line
Even if prices are leveling off in some Massachusetts communities, homeowners are still sitting on near-record equity.If you’re wondering how much equity you’ve built — or how far ahead you really are — let’s connect. You might be surprised at what your Massachusetts home is actually worth today.
