Retiring Soon? Why Moving Might Be the Perfect Next Step
If you’re contemplating retirement or have recently retired, now is an opportune moment to assess whether your current residence aligns with the next phase of your life.
Luckily, you might be better positioned than you realize to embark on a housing transition. Here are some factors to ponder as you weigh the decision to sell and relocate.
How Long You’ve Been in Your Home
Historically, from 1985 to 2008, homeowners typically resided in their homes for an average of only six years. However, recent data from the National Association of Realtors (NAR) indicates a growing trend, suggesting that today’s homeowners are staying in their properties for more extended periods. This shift implies that many individuals are choosing to remain in their homes for a more extended timeframe.
(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 the growth of home prices varies across states and localities, the national average reveals that homeowners who have resided in their homes for five years witnessed an approximate 60% increase in value. Furthermore, those who have owned their homes since 1991 experienced a value surge of more than triple during that period.
Take into Account Your Retirement Objectives
Whether your aim is to downsize, move to a desired location, or simply be in closer proximity to family, your home equity can play a pivotal role in achieving your homeownership aspirations. According to information from the National Association of Realtors (NAR), recent home sellers cited being closer to loved ones as the primary motive for moving.
Regardless of your homeownership goals, a reliable real estate agent can collaborate with you to identify the optimal solution. They will assist you in selling your current property and provide guidance in acquiring a home that aligns with your present lifestyle
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore the available homes in our area.
