In 2025, the real estate landscape in Andover and North Andover, Massachusetts is shifting in a way that clearly favors those who already own a home. With high prices, limited inventory, and rising buyer competition, having home equity has become one of the strongest financial advantages a local homeowner can hold.

Whether you’re thinking about refinancing, renovating, or making a move within Essex County, understanding the power of equity—and how it shapes today’s market—can help you make smarter decisions.

Home Equity: The Biggest Financial Advantage for Andover Homeowners

If you already own a home in Andover or North Andover, you likely have more equity than you think.
Why? Because home values have increased significantly over the past decade.

Example: Rising Local Home Values

• In 2015, the median single-family home price in Andover hovered around $550,000.

• By 2024–2025, that median has climbed closer to $900,000–$950,000, depending on the neighborhood.

That means many homeowners have gained hundreds of thousands of dollars in equity, simply by owning a home.

How That Equity Becomes Your Superpower

With strong equity, Andover homeowners can:

• Sell and apply the equity to their next home, reducing the new mortgage significantly.

• Potentially avoid a new mortgage altogether if downsizing.

• Borrow against equity to fund renovations, debt consolidation, college tuition, or emergency expenses.

For example, if you purchased a home in Andover a decade ago for $600,000 and it’s now valued at $1,000,000, your estimated equity (assuming a remaining mortgage balance of $300,000) could be:

$1,000,000 market value – $300,000 mortgage = $700,000 equity

That $700,000 gives you options that many first-time buyers simply don’t have.

For Non-Homeowners: The Traditional Path to Buying Is Changing

While homeowners enjoy rising equity, those trying to enter the market—especially in high-demand areas like Andover—are facing a different reality.

The Median Age of First-Time Homebuyers Has Reached 40

National trends now show:

• The median first-time homebuyer is 40, the highest age ever recorded.

• Buyers are renting longer, saving longer, and waiting longer before entering the market.

This shift means many new buyers may spend less time building equity in a “starter home” before moving on to their next property.

Why This Matters in Andover

Andover’s combination of:

• strong schools,

• low crime,

• suburban lifestyle,

• and limited housing supply

creates above-average competition for entry-level homes.

In 2025, a typical starter-home in Andover—often a smaller Cape or ranch—can easily fall in the $650,000–$750,000 range. For someone entering the market later in life, this requires stronger income stability and substantial savings.

Homeowners Are Reinforcing the Advantage by Staying Put Longer

Another trend boosting homeowner leverage is longer property retention. Many Andover residents are staying in their homes 10–15 years or more, allowing equity to grow even further.

This widens the gap:

• Homeowners continue gaining equity and wealth,

• while first-time buyers face higher entry costs and a compressed timeline to build their own equity.

What This Means for You—Whether You Own or Want to Own in Andover

If You Are an Andover Homeowner

Your equity is a financial tool. You can:

• Move into a larger home or downsize with less financial strain

• Renovate using a home equity line or cash-out refinance

• Invest in additional property

• Strengthen long-term wealth building through real estate

Even if you feel “locked in” to a low interest rate, your equity gives you meaningful flexibility.

If You Are a Future Buyer in Andover

The dream isn’t out of reach—but the strategy must evolve.

Helpful pathways include:

• FHA, VA, or MassHousing first-time buyer programs

• Buying a condo or townhouse first

• Expanding your search to neighboring towns like North Andover, Tewksbury, or Haverhill

• Considering a home that needs renovation (and using rehab-loan options)

The key is adjusting expectations in a high-equity, high-competition market.

Equity Defines Today’s Market in Andover

Whether you’re already a homeowner or working toward becoming one, understanding how equity shapes the current real estate landscape is essential—especially in communities like Andover and North Andover, where demand remains consistently strong.

In 2025, those who own property have a meaningful financial head start, while those entering the market must navigate new expectations and strategies.

But no matter which side of the equation you're on, informed planning—and guidance from a local real estate professional—can help you move forward confidently.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA