Planning to Retire? It Could Be Time To Make a Move
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.
You might have more leeway than you think when making a decision. Consider the following before settling on anything.
Consider How Long You’ve Been in Your Home
The average length of time homeowners typically stayed in their homes was only six years from 1985 to 2008. 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):
It's only natural to experience a slew of changes while living in the same home for an extensive period of time. With each new life change or milestone, your needs will more than likely shift. If your home doesn't suit your needs anymore, there are probably other places that would be a better fit.
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):
The average homeowner who has been in their house for five years has seen it increase by over 50%! However, this number varies depending on the state and local area. And in the span of 30 years, the value of an average homeowner's property triples.
Consider Your Retirement Goals
Home equity can help you achieve a variety of different homeownership goals, whether that's downsizing, relocating to your dream destination, or moving closer to loved ones. 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.
A reliable real estate advisor will help you attain the objectives you have for your home. 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.
Now that you're retired, your home may not suit your needs anymore. Let's talk about options in our local market.