Los Angeles Real Estate Report

Feeling Stuck? Your Equity Might Be the Key

After 33 years helping homeowners across Los Angeles navigate every kind of market, I can tell you that the most common hesitation I'm hearing right now is this: "I don't want to give up my low mortgage rate." I get it. Trading a 3% rate for something in the sixes or sevens feels like a step backward. But here's what many of my clients discover once we sit down and look at the numbers — the equity they've built up over the years changes the entire equation. If you've been on the fence about selling, understanding your equity position may be exactly what gives you the confidence to move forward. For homeowners exploring their options, my [seller resources page](/sellers-resources) is a great place to start thinking through the financial picture.

How Home Equity Can Be a Game Changer for Los Angeles Sellers Ready To Make a Move

What Equity Is and Why It's Surging in Los Angeles

Equity is simply the current market value of your home minus whatever you still owe on your mortgage. And in Los Angeles — whether you own a 1920s Spanish Colonial in Hancock Park, a mid-century gem in the Hollywood Hills, or a classic Craftsman in West Adams — that equity has likely grown far more than you realize.

Over the last several years, home prices rose dramatically across Southern California, giving homeowners a significant equity boost in a short period of time. While the market has normalized somewhat, there's still a persistent imbalance between the number of homes available for sale and the number of buyers actively looking. That sustained demand is keeping prices on an upward trajectory. As Rob Barber, CEO of ATTOM, a leading property data provider, puts it: "Equity levels were high even during the recent downturn, and now they are going back up and better than ever."

How Your Equity Works for You in Today's Market

With affordability challenges front and center for buyers and sellers alike, your built-up equity can be a genuine game changer when it's time to make a move. According to data from ATTOM and the U.S. Census, nearly two-thirds of homeowners — roughly 68.7% — have either paid off their mortgages entirely or hold at least 50% equity in their homes. That's a remarkable position of strength.

Here's what that means in practical terms. Once you sell, you can deploy that equity toward your next purchase. For many of my clients, it covers most or all of the down payment on their next home. For others — especially those who've owned in Los Angeles for a decade or more — it's enough to make a substantially larger down payment, which significantly reduces the amount they need to finance. And for long-term owners of historic or legacy properties, the equity may be sufficient to purchase the next home entirely in cash, sidestepping today's mortgage rates altogether. If you're a buyer planning your next chapter, I've put together a collection of [essential buyer resources](/buyers-resources) to help you understand your purchasing power.

How To Find Out Exactly Where You Stand

The best way to determine how much equity you've built is to work with a trusted real estate professional who can prepare a Professional Equity Assessment Report — sometimes called a PEAR. This isn't a rough Zillow estimate. It's a detailed analysis based on comparable recent sales in your specific Los Angeles neighborhood, the unique characteristics of your property, and current market conditions. In my experience, owners of historic homes and properties held in probate or trust are often surprised to learn just how much their real estate has appreciated. The numbers can open doors you didn't think were available.

Key Takeaways for Los Angeles Homeowners

• →Nearly 70% of U.S. homeowners have 50% or more equity — and in LA's appreciating market, that figure can be even higher.
• →Your equity can fund a larger down payment, reduce your next loan amount, or even allow an all-cash purchase.
• →A Professional Equity Assessment Report (PEAR) from an experienced agent gives you the most accurate picture of your financial position.
• →Long-term owners of historic, probate, and trust properties often have significantly more equity than they expect.
• →Even with higher mortgage rates, strong equity can offset affordability concerns and make your next move financially sound.

Frequently Asked Questions

Wondering how much equity you've built in your Los Angeles home? I've helped homeowners across the city unlock their equity for over three decades — from historic estates to probate and trust properties. Let's sit down, run the numbers, and map out your best move.