40291, Louisville, KY

When people think of home equity, they typically think of the amount of money that they own outright in their home. But what about the value of the home itself? That's where home equity comes in. Home equity is the difference between what a homeowner owes on their home and what the property is actually worth.

In Louisville, KY, the average homeowner has a total net worth of $157,000. This includes both their equity in their homes and any other assets they may have (such as stocks or savings accounts).

But how has Louisville's average homeowner fared over time? In 2007, homeowners had an average net worth of just under $130,000. Since then, however, things have changed dramatically - homeowners' net worth has increased by more than 50%.

This increase can be largely attributed to two factors: firstly, prices for homes in Louisville have continued to rise; secondly, homeowners' equity has grown faster than inflation since 2007.

So far this decade (2010-2019), Louisville's homeowners have seen their net worth grow by an additional 25%. This means that on average homeowners are now sitting on more than $165,000 in total net worth - which is impressive given that prices haven't stopped rising since 2007!

Looking ahead though, there are some risks associated with owning a home in Louisville right now. Firstly, interest rates are still relatively low; so if rates go up (or if someone loses their job), they could find themselves struggling to make payments on their mortgage. Secondly - and this is something that many people don't realise - mortgages aren't actually guaranteed by the government like traditional loans are. So if something happens to your income or your house value (for example because of a natural disaster), you could find yourself facing serious financial difficulties.

The bottom line is that while Louisville's homeowners are doing well overall right now thanks to strong prices and growing equity values - there are always potential risks involved when investing money long-term!