How Much Equity Do Montgomery County Homeowners Have in 2026?

If you bought a home in Montgomery County more than five years ago and have been hesitant to move because of today's higher mortgage rates, there is a number you need to know first: your equity.

A lot of homeowners are sitting on hundreds of thousands of dollars in equity built through rising home values and years of mortgage payments — and that number can completely change the math on your next move.

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How Home Equity Works

Every mortgage payment you make reduces your loan balance. At the same time, home values in Montgomery County have risen significantly over the past decade. Those two forces combine: you owe less, and the home is worth more. The gap between what your home is worth and what you owe is your equity.

According to Realtor.com, nearly half (45.2%) of today's homeowners have lived in their home for more than 15 years, and 1 in 4 have lived there for over 25 years. If that is you, the equity picture is compelling.

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What Buying at Different Points in Time Looks Like Today

Based on Realtor.com research, here is how much equity homeowners have built depending on when they bought the average-priced home nationally:

| Purchase Year | Purchase Price | Down Payment (20%) | Principal Paid Down | Value Gained | Total Equity | |---|---|---|---|---|---| | 1995 | $114,600 | $22,920 | $91,680 | $320,700 | $435,300 | | 2005 | $229,000 | $45,800 | $84,317 | $206,300 | $336,417 | | 2015 | $236,300 | $47,260 | $38,476 | $199,000 | $284,736 |

Source: Realtor.com. Estimates based on median-priced home purchase.

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What This Means for Montgomery County Homeowners Specifically

Montgomery County's home values have consistently outpaced national averages. The median sale price in Montgomery County reached $606,750 in February 2026, up from well under $400,000 a decade ago.

A homeowner who bought a $350,000 home in Montgomery County in 2015 — a reasonable entry point for many parts of the county at that time — has likely seen appreciation well above the national average. Combined with 10 years of mortgage payments reducing the loan balance, total equity in the $200,000–$300,000 range is realistic for many owners in the county.

Homeowners who bought in 2010 or earlier are looking at numbers that may be hard to believe. In Bethesda, Chevy Chase, Potomac, and North Bethesda, values have more than doubled since 2000.

As Yahoo Finance put it: "For many American homeowners, their house is their biggest financial asset. Over the past few years, rising property values and steady mortgage payments may have helped you build a significant cushion of equity."

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How Equity Changes the "I Don't Want to Give Up My Rate" Calculation

The most common reason Montgomery County homeowners give for not selling right now is rate lock-in: they refinanced to 2.75% or 3% in 2020–2021 and cannot stomach taking on a 6.5% mortgage for their next home.

But equity changes this calculation in two important ways:

A larger down payment means financing less at the higher rate. If you have $350,000 in equity and put it toward a $700,000 home, you are only financing $350,000 — not $700,000. That dramatically reduces the payment impact of a higher rate.

In some cases, buying with all cash becomes realistic. Depending on your equity position and the price range you are targeting, you may be able to make a cash offer. A cash offer is the strongest possible offer in any market — and sellers in today's Montgomery County market frequently receive them from equity-rich buyers who have made this exact calculation.

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The Concession Math: Even Sellers Are Coming Out Ahead

Some sellers are concerned about the current market dynamics — more inventory, buyers asking for repairs and concessions. But context matters.

Home prices in the DC metro are up roughly 43% over the past five years. Even if you accept a $15,000 closing cost credit or agree to make $10,000 in repairs as a condition of sale, you are still capturing the substantial appreciation that has built up in your home since you bought it. Concessions from a position of significant equity are tools, not losses.

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Three Questions Worth Asking Right Now

If you own a home in Montgomery County and have not thought seriously about your equity position in a while, three questions are worth exploring:

What is your home actually worth today? Online estimates (Zillow, Redfin) are a starting point but miss property-specific factors. A local comparative market analysis gives you a more accurate number.

What is your current mortgage balance? Your equity is the current value minus what you owe. Many homeowners are surprised by how much the balance has dropped over 5–10 years of payments.

What would you do with that equity? Could it fund a down payment that dramatically reduces your monthly payment on a larger home? Could it enable a cash purchase? Could it fund retirement, a second property, or a relocation?

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Frequently Asked Questions

How do I find out how much equity I have in my Montgomery County home?

Your equity is your home's current market value minus your remaining mortgage balance. You can get an approximate market value from a local comparative market analysis (a REALTOR® can provide this for free), and your current mortgage balance is on your most recent mortgage statement. For a precise payoff amount, call your lender.

How much has Montgomery County home values increased since 2015?

The median sale price in Montgomery County in February 2026 was $606,750, up from approximately $350,000–$375,000 in 2015 depending on the property type and location — an appreciation of roughly 60–70% over that period. Homeowners in high-demand neighborhoods like Bethesda, Chevy Chase, and Potomac have seen even greater appreciation.

Should I sell my Montgomery County home to access my equity?

That depends on your goals. Selling is one way to access equity, but there are others (HELOCs, cash-out refinance). If you are thinking about a move anyway — whether to downsize, upsize, relocate, or change lifestyle — understanding your equity is the right first step. It may make the move more financially feasible than you realize.

Does high equity mean I should sell even if I have a low mortgage rate?

Not necessarily. But for homeowners with $250,000 or more in equity, the math often looks different than they expect. A significant equity contribution to your next purchase can reduce the amount you need to finance at today's higher rate, potentially making the monthly payment difference much smaller than the rate comparison alone would suggest.

What percentage of Montgomery County homeowners have significant equity?

Nationally, nearly half of homeowners have lived in their home more than 15 years (Realtor.com). Montgomery County's homeownership tenure patterns are similar. Given the county's above-average price appreciation over the past decade, a substantial share of long-term homeowners likely have six-figure equity positions.

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Data sources: Realtor.com, Yahoo Finance, Bright MLS February 2026. Local home value estimates are approximations based on regional data and are not a substitute for a professional market analysis. Edward Dumitrache is a licensed REALTOR® serving Maryland, Washington DC, and Northern Virginia. Want to know what your home is worth today? Let's talk.