As retirement approaches, or if you have already entered this phase (congratulations), you might contemplate whether your current residence remains an ideal fit. Over the years, living in the same home, it's natural for your needs to evolve with the various milestones of life. You might discover that your home has become too spacious for the requirements of this next chapter. Perhaps you've harbored a long-held dream of relocating to a specific destination, either for a visit or to establish a new residence, or maybe you simply desire closer proximity to family. Exploring the option of selling your home could unlock the opportunity to transition to a living arrangement better suited to your current lifestyle.
How long have you owned your home?:
In contemporary times, individuals tend to reside in their homes for more extended periods than in previous eras. The increased duration of residence often correlates with a more advantageous position when considering a sale. Examining a few key factors, the National Association of Realtors (NAR) revealed that, on average, homeowners maintained ownership of their homes for six years from 1985 to 2008. However, since 2009, there has been a notable increase, with homeowners now staying in their homes for an average of 9.2 years, as illustrated in the accompanying graph.
If you belong to the majority of today's homeowners, chances are you've resided in your current home for more than 5 years. In such instances, this duration often signals that a relocation could be advantageous. Generally, after just 5 years in your home, you've likely accrued substantial equity, thanks to the appreciation in home prices.
If your residence has been your haven for more than 5 years, you could be in possession of a significant sum of money capable of turning your dreams into reality. In the recent market, homeowners have seen their equity soar by nearly 60% over the past 5 years. Those who have held ownership of their homes since 1991 have witnessed a remarkable threefold increase in the value of their homes since the initial purchase.
The market:
Presently, we find ourselves in a sellers' market marked by stable home price appreciation. A scarcity of inventory, coupled with the anticipation of declining mortgage rates, is shaping the real estate landscape. The onset of rate decreases is making homeownership a feasible option once again for those in pursuit of a new property. If you're not currently engaged with a real estate agent and wish to explore a strategic plan, feel free to connect with us.
Whether your aspirations involve downsizing, relocating to your dream destination, funding the vacation of a lifetime, or moving closer to loved ones, the equity in your home can serve as a valuable resource to help you achieve these goals.