Los Angeles Real Estate Report

Your Home Equity Is One of Your Greatest Financial Assets

After more than three decades helping families buy and sell across Los Angeles, I can tell you that one of the most under-appreciated advantages homeowners have right now is the equity sitting in their property. Whether you own a mid-century home in the Hollywood Hills, a Spanish Colonial in Hancock Park, or a classic bungalow on the Westside, the appreciation Los Angeles real estate has experienced means you've likely built up a significant financial cushion — sometimes without even realizing it.

When you sell your house, that equity can be put directly toward purchasing your next home. But before you leverage it, it's important to understand exactly what equity is and how it works for you. As Bankrate explains: "Home equity is the portion of your home you've paid off — in other words, your stake in the property as opposed to the lender's. In practical terms, home equity is the appraised value of your home minus any outstanding mortgage and loan balances."

If you're thinking about making a move and want to understand exactly where you stand, I always recommend starting with a clear picture of your home's current market value. Our [seller resources guide](/sellers-resources) walks you through the key steps to prepare for a successful sale.

How to Leverage Your Home Equity When Selling in Los Angeles

The Majority of Americans Hold a Substantial Amount of Equity

If you've owned your Los Angeles home for any meaningful length of time, the numbers are likely in your favor. Based on data from the U.S. Census Bureau and ATTOM, the majority of American homeowners have a substantial amount of equity right now — and in a high-value market like LA, those figures can be especially significant.

Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, puts it in perspective: "Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008."

This is something I emphasize with every client I work with, whether we're navigating a probate sale, a trust property transaction, or a traditional listing. Equity isn't just a number on paper — it's financial stability while you own your home and purchasing power when you're ready to move on. Over time, as you pay down your mortgage and your property appreciates, that equity compounds quietly in the background.

Putting Your Equity to Work on Your Next Home

Here's where the real opportunity lies. When you sell your current home and capture that equity, it can dramatically change what's possible for your next purchase. A larger down payment means better loan terms, lower monthly payments, and a stronger negotiating position — all of which matter enormously in a competitive market like Los Angeles.

I've seen clients who assumed they couldn't afford to upgrade discover, once we ran the numbers, that decades of appreciation had given them far more leverage than they expected. That's especially true for owners of historic and character homes in neighborhoods like Los Feliz, Pasadena, and West Adams, where values have climbed steadily.

Whether you're upsizing, downsizing, or relocating within LA, understanding your equity position is the essential first step. Our [buyers resources page](/buyers-resources) can also help you explore what's available and how to prepare for your next purchase with confidence.

Key Takeaways on Leveraging Home Equity in LA

• →Home equity is the difference between your property's appraised value and your remaining mortgage balance — and it grows over time.
• →The majority of American homeowners currently hold substantial equity, providing both financial security and purchasing power.
• →Record equity levels help stabilize the housing market and reduce the risk of a downturn like 2008.
• →In high-appreciation markets like Los Angeles, long-term homeowners often have more equity than they realize.
• →Selling strategically allows you to convert that equity into a stronger position for your next home purchase.

Frequently Asked Questions

Want to know exactly how much equity you've built in your Los Angeles home? After 33 years in this market, I can help you understand your position and plan your next move with confidence. Let's talk.