Smart Ways to Use Your Home Equity

Written By Carly

Home Equity Continues to Rise in Our Region

In my article last week, I shared how Monmouth County, NJ home values have surged nearly 70% since 2019. That means if you bought your home before, or during the early days of the COVID-19 pandemic, you're likely sitting on a serious amount of equity.

Even better news: the real estate and mortgage data company CoreLogic reported at the end of 2024 that New Jersey and Rhode Island saw the greatest year-over-year home equity growth in the entire nation. CoreLogic also noted that the Newark, New Jersey, and the New York City metro areas are in the top 10 hottest real estate markets in the nation in terms of home prices.

While some regions in our country are experiencing declines in home sales and prices, the New York metro area remains on fire. Here in Monmouth County, we've seen an increase in the median home sale price of 4.7% as of March 22nd, 2025, compared to the same timeframe last year. The current median home sale price is $665,000 inclusive of all housing types: single family, townhouse/condo, and active-adult communities.

Three Smart Ways to Use Your Home Equity

Today, I want to discuss three smart strategies for homeowners to leverage the equity in their homes.

1. Trade-Up Your Home

Many homeowners are using their equity to buy newer or larger homes without significantly increasing their monthly mortgage payments. Especially if you were an early pandemic buyer, this could be your opportunity to level up to a new property while your current house value is at peak price. 

Selling now, while regional home values are high, could enable you to make a significant down payment on your next home, potentially resulting in the same or even lower monthly mortgage payments. As a buyer in today's market, you'll have more options to find properties that better suit your needs. Inventory levels continue to improve in 2025, giving trade-up buyers more choices and better chances at landing their dream home.

2. Downsize and Invest

Homeowners with substantial equity might consider selling their house to downsize and potentially join the FI:RE movement (Financial Independence, Retire Early). The equity released from selling a larger home can be used to:

  • Purchase a smaller property in cash, and live mortgage-free

  • Lower overall monthly living costs with a smaller home, including utilities and maintenance expenses

  • Enhance your lifestyle with travel and other leisure activities because your living costs are lower

  • Invest in other financial vehicles such as rental properties that will give you recurring income

  • Increase your investments in other savings and retirement accounts 

3. Tap Into Equity While Staying Put

Selling isn't the only option for using your home equity. Consider tapping into that equity by refinancing or getting a home equity line of credit (HELOC) to:

  • Renovate and increase the long-term value of your home

  • Finance that dream kitchen 

  • Invest in landscape projects that boost your home's value and your satisfaction

  • Purchase an investment property, turning your home into a cash-flow asset

Find Out What Your Home is Worth

If you're curious about how much equity you might have in your house, I'd be happy to provide a current market analysis of your property. Please reach out to me, Dr. Carly York with Resources Real Estate, at 732-212-4440, or cyork@ResourcesRealEstate.com 

Carly

Carly York is a Real Estate Expert who helps home sellers and buyers transform their lifestyles!

She understands that moving is more than a transaction—it’s a major life change. Carly knows that homeownership isn’t just the American Dream; it’s the key to living life on your own terms.

With a doctorate in education, Carly brings a rare blend of analytical skill, deep market knowledge, and a teacher’s ability to simplify complex real estate decisions. Since 2015, she has guided clients through numerous transactions, helping them buy and sell with confidence and peace of mind.

After taking a brief hiatus to focus on personal and professional growth, Carly has returned with fresh energy and a renewed commitment to her clients. Whether navigating a competitive market, preparing a home for sale, or finding the perfect property, Carly’s strategic approach ensures her clients achieve their real estate goals.

As a Monmouth County native, she offers unmatched knowledge of local towns, schools, and infrastructure—making her an invaluable resource for newcomers. Having personally endured major life challenges, including Hurricane Sandy, Carly is especially equipped to help clients facing transitions such as marriage, divorce, growing families, empty nesting, or other significant life changes.

Carly has earned the prestigious New Jersey Realtors® Circle of Excellence Sales Award for multiple years (2017, 2018, 2019, 2021, 2022) and is a proud Broker-Associate with Resources Real Estate in Colts Neck, NJ. In the ever-evolving real estate market, Carly is the expert guide that buyers and sellers need to make smart, informed decisions.

If you’re ready to move, Carly is ready to help!

https://www.MonmouthHomeSales.com
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5 Years After COVID-19: Monmouth County's Real Estate Market Transformation