Retirement marks a profound turning point in life, ushering in a wave of transformations and fresh prospects. As you step into this thrilling new chapter, one enticing possibility that might cross your mind is the prospect of selling your home and finding a more fitting residence to meet your changing needs.
The good news is that you may be better poised for this move than you'd think. Let's delve into a few compelling reasons why.
Consider How Long You’ve Been in Your Home
In the period from 1985 to 2009, the typical homeowner remained in their house for an average of approximately six years. However, according to data from the National Association of Realtors (NAR), that figure has seen an increase in recent years. Since 2010, the average length of homeownership has extended to just over nine years (as illustrated in the graph below):
This implies that in recent years, a significant number of homeowners have extended their residency in their homes. When you spend such an extensive period in a residence, it's only natural for your life to undergo changes while you're there. As these life transformations and milestones occur, your requirements may evolve as well. If your current home no longer aligns with these evolving needs, there could be superior alternatives awaiting you.
Consider the Equity You’ve Gained
Furthermore, if you've resided in your home for more than a few years, it's probable that you've amassed a substantial amount of equity that can fuel your next transition. This is primarily due to the accumulation of equity as you make mortgage payments and witness the appreciation of home values. The longer you've called your place home, the greater the potential gains. The data from the Federal Housing Finance Agency (FHFA) visually demonstrates this point (as indicated in the graph below):
While housing prices may exhibit variations depending on your location, the nationwide average reveals some compelling figures. On average, homeowners who have resided in their homes for just five years have witnessed an impressive nearly 60% increase in their property's value. Furthermore, for those who've held onto their homes for a remarkable 30 years, the value has nearly tripled over that span.
Whether your aspirations entail downsizing, relocating to your dream destination, or settling closer to cherished friends and family, your accrued equity can be a valuable asset. Regardless of your homeownership goals, a dependable real estate agent can collaborate with you to identify the most favorable path forward. They will assist you in the sale of your current residence and offer guidance in the pursuit of a new home that aligns perfectly with your current lifestyle.
Bottom Line
As you chart your retirement plans, it's advisable to reach out to a local real estate agent. Call the Sycamore Team now! They can provide you with insights into the equity you've accumulated over the years and help you strategize how to leverage it for the acquisition of a home that seamlessly caters to your evolving needs.
