Retirement marks a significant milestone in life, often accompanied by a myriad of changes and fresh opportunities. One such opportunity that retirees frequently contemplate is selling their current home and transitioning into one that better aligns with their new lifestyle and needs. Luckily, your equity can be a powerful tool in facilitating this transition.
Between 1985 and 2009, homeowners in the U.S. typically maintained their residence for an average of six years, according to the National Association of Realtors (NAR). However, since 2010, this average home tenure has extended to just over nine years.
This shift implies that many homeowners have been residing in their properties for increasingly longer periods. These extended stays often coincide with significant life changes and milestones, triggering a shift in homeowners' needs and preferences. If your current home no longer fulfills these evolving requirements, it might be time to explore new horizons.
For those homeowners who have resided in their homes for several years, there's a high likelihood that you've accumulated a sizable equity stake. Your equity builds up as you continue paying off your mortgage and as your home appreciates in value. Generally, the longer you've owned your home, the more equity you've amassed.
Data from the Federal Housing Finance Agency (FHFA) echoes this sentiment. While home prices vary across regions, the national average reveals a remarkable trend. Homeowners who have lived in their homes for five years have seen their property's value increase by nearly 60%. Meanwhile, those who've owned their homes for 30 years have seen their property values almost triple.
This amassed equity can be your ticket to achieving your retirement home goals. Whether you plan to downsize, relocate to your dream location, or move closer to your loved ones, your equity can pave the way.
A trusted real estate agent can be an invaluable resource in leveraging your equity to facilitate your move. They can guide you in selling your current house and assist you in finding the perfect home that aligns with your lifestyle and needs.
As you embark on your retirement journey in 2023, let's explore how your accumulated equity can be a catalyst in fulfilling your home dreams.