If you’re contemplating retirement or have already retired this year, it’s the perfect time to evaluate whether your current home still suits your lifestyle. Fortunately, you may be better positioned to relocate than you imagine. Here are a few factors to consider when deciding whether to sell your home and move.
How Long You’ve Been in Your Home
Between 1985 and 2008, homeowners typically stayed in their homes for an average of only six years. However, the National Association of Realtors (NAR) has reported that this number is now on the rise, indicating that homeowners are increasingly choosing to stay in their houses for longer periods of time. This trend is clearly reflected in the graph below.
When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
How Much Equity You’ve Gained
If you have been living in your house for several years, you could have accumulated a significant amount of equity which can be used to fund your next move. This is because as time passes, your home’s value may have increased due to appreciation in home prices. The Federal Housing Finance Agency (FHFA) has provided data that confirms this trend, which can be seen in the graph below:
Although home price growth varies depending on the state and local area, the national average indicates that the typical homeowner who has lived in their house for five years has seen an increase in its value by close to 60%. Furthermore, the average homeowner who has owned their home since 1991 saw its value more than triple over that period of time.
Consider Your Retirement Goals
If you’re considering downsizing, moving to your dream location, or relocating closer to your family, your home equity can be a valuable resource to achieve your homeownership aspirations. According to NAR, the primary reason for recent home sellers to move was to be closer to their loved ones. To find the best option for your home goals, you can rely on the expertise of a trusted real estate agent. They can assist you in selling your current property and guide you through the process of purchasing a new home that suits your lifestyle and preferences.
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore the available homes in our area.