If you’re thinking about retirement or have already retired this
year, you may be planning your next steps. One of your goals could be selling your house and finding a home that more closely fits your needs.
Fortunately, you may be in a better position to make a move than you
realize. Here are a few things to think about when making that decision.
Consider How Long You’ve Been in Your Home
From 1985 to 2008, the average length of time homeowners typically
stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are living in their houses even longer (see 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.
Consider the Equity You’ve Gained
Additionally, if you’ve been in your home for more than a few years, you’ve likely built up significant equity that can fuel your next move. That’s because the longer you’ve been in your home, the more likely it’s grown in value due to home price appreciation. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):
While home price growth varies by state and local area, the national
average shows the typical homeowner who’s been in their house for five
years saw it increase in value by over 50%. And the average homeowner
who’s owned their home for 30 years saw it almost triple in value over
Consider Your Retirement Goals
Whether you’re looking to downsize, relocate to a dream destination,
or move so you live closer to loved ones, that equity can help you
achieve your homeownership goals. NAR shares
that for recent home sellers, the primary reason to move was to be
closer to loved ones. Plus, retirement played a large role for those
moving greater distances.
Whatever your home goals are, a trusted real estate advisor can work with you to find the best option. They’ll help you sell your current house and guide you as you buy the home that’s right for you and your lifestyle today.
Retirement can bring about major changes in your life, including what
you need from your home. Let’s connect to explore your opportunities in
our local market.