If you are thinking about retiring this year or have already retired, now is the time to consider whether your current home is still a good fit for the next chapter of your life.
Fortunately, you may be in a better position to make a move than you realize. Here are a few things to consider as you decide whether or not to sell and relocate.
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 house for an extended period of time, it is natural for you to go through a number of changes in your life. Your needs may change as your life changes and milestones occur. And if your current home no longer meets them, you may have better options available to you.
How Much Equity You’ve Gained
Furthermore, if you have been in your home for more than a few years, you have most likely amassed significant equity that can be used to fund your next move. That is because the longer you have lived in your home, the more likely it has appreciated in value as a result of 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 locality, the national average shows that the average homeowner who has lived in their home for five years has seen its value increase by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value over that time.
Consider Your Retirement Goals
Whether you want to downsize, relocate to a dream location, or simply be closer to family, your home 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.
Whatever your housing goals are, a reputable real estate agent can help you find the best solution. They will assist you in selling your current home and assisting you in purchasing the home that is best suited to your current lifestyle.
Retirement can bring about significant changes in your life, including what you require from your home. Let’s connect to explore the available homes in our area.
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