Making Plans to Retire? Equity Can Help You Move
Retirement is a huge life milestone, bringing with it a lot of change and new opportunities. As the door to this exciting chapter opens, you may be considering selling your house and choosing a place better suited to your evolving demands.
Fortunately, you may be in a better position to make a move than you realize. Here are a few reasons why.
Consider How Long You’ve Been in Your Home
From 1985 to 2009, the average homeowner resided in their home for about six years. However, according to the National Association of Realtors (NAR), that figure is now higher. Since 2010, the average house tenure has been slightly more than nine years (see graph below):
This means that many homeowners have been staying in their homes for even longer in recent years. When you live in a house for an extended period of time, it's natural to notice changes in your life. Your requirements may alter as your life changes and milestones occur. And if your present house no longer meets them, you may have better options available to you.
Consider the Equity You’ve Gained
And if you've been in your house for more than a few years, you've most likely built up significant equity that can be used to fund your next relocation. This is because you gain equity as you pay down your debt and as home prices rise. And the longer you've lived in your house, the more you may have learned. Data from the Federal Housing Finance Agency (FHFA) illustrates this fact (see graph below):
While home values vary by region, the national average shows that the typical homeowner who has lived in their home for five years has seen its value increase by about 60%. And the ordinary homeowner who has owned their home for 30 years has seen its value nearly triple in that period.
Whether you want to downsize, relocate to a dream location, or move closer to friends or loved ones, equity can help. Whatever your housing objectives are, a reputable real estate agent can help you locate the ideal solution. They will assist you in selling your current home and guide you in purchasing the property that is best for you and your lifestyle now.
Let's talk about how much equity you've built up over the years and how you may utilize it to buy a home that meets your changing needs as you plan for your retirement.