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.
How Much Equity You’ve Gained
Additionally, if you’ve been in your house 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 house, 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 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 your aim is to downsize, move to a desired location, or simply be in proximity to family, leveraging your home equity can play a crucial role in achieving your homeownership aspirations. According to NAR, a significant number of recent home sellers moved primarily to be closer to loved ones. Whatever your homeownership objectives may be, a reliable real estate agent can collaborate with you to identify the optimal solution. They will assist you in selling your current property and navigate the process of acquiring a home that aligns with your current lifestyle.
Retirement can usher in significant life changes, affecting your housing needs. Reach out to a nearby real estate agent to explore the housing options currently available in your area.