My Home Is Worth More Money Than Ever. Here's Why That Doesn't Help Me at All

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A higher home value isn't having any impact on me for a few key reasons.

Right now, homeowners all over the country are sitting pretty due to rising property values. In fact, as of this summer, home prices were up an astounding 19.7% from the year prior.

I've owned my home for about 12 years now, and I've seen its value fluctuate during that time. At this point, my home could probably sell for a whopping $200,000 more than I bought it for. For context, a year ago, that figure would've been closer to $100,000, which speaks to today's intense housing market.

You'd think that news would have me jumping for joy. But actually, the fact that my home is worth more right now is doing little for me. Here's why.

1. I'm not looking to sell my house

If I were to sell my home right now, I'd likely command a huge profit. But that's not something I'm looking to do.

I have young children who spent the past year getting schooled from home during the pandemic. The idea of uprooting them right now just isn't appealing -- especially since moving would likely mean switching neighborhoods and school districts. Since I'm not selling my home, I can't profit on it.

2. If I were to move, I'd pay a premium for another home

As much as I don't have any near-term plans to move, the idea has tempted me over the past year. But when I went and actually looked at options in nearby towns, I got a big wakeup call.

Just as the value of my home soared, other homes are also exponentially more expensive than they were a year or two ago. If I were to sell my home and buy another one, what I would gain from the sale of my place, I would lose in the form of a costlier home purchase elsewhere.

3. I'm not looking to tap my home equity

Since home values are up on a national level, so is home equity. Home equity represents the portion of your home you own outright. If you owe $175,000 on a mortgage but your home value is estimated at $300,000, that's $125,000 of equity that you can potentially borrow against as needed.

While I may have plenty of home equity at my disposal, I'm not looking to use it. I don't have any big home renovations in the works -- just smaller projects that I don't need to finance. A repair could pop up at any time, but I also have money in an emergency fund for that purpose so I don't have to borrow the money and rack up interest.

Selling my home has no major benefit for me

Higher home values may be helping a lot of people right now, but for me, the benefit just isn't there. If anything, I'm worried that a higher home value will result in a property tax hike to add to my already-expensive tab.

If your home has gained value over the past year, that could end up benefiting you financially. But on my end, a higher home value isn't changing things.

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