If youre 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 Youve 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, its natural for you to experience a number of changes in your life while youre 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 Youve Gained
Additionally, if youve been in your home for more than a few years, youve likely built up significant equity that can fuel your next move. Thats because the longer youve been in your home, the more likely its 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 whos been in their house for five years saw it increase in value by over 50%. And the average homeowner whos owned their home for 30 years saw it almost triple in value over that time.
Consider Your Retirement Goals
Whether youre 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. Theyll help you sell your current house and guide you as you buy the home thats right for you and your lifestyle today.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Lets connect to explore your opportunities in our local market.