If you’re 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 You’ve 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, 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.
Consider the Equity You’ve Gained
Additionally, if you’ve been in your home 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 home, 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 home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by over 50%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time. Here in Michigan, the data is showing a staggering growth between 60-80% (see image below).
Consider Your Retirement Goals
Whether you’re looking to downsize, relocate to your dream home, 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.
Consider Trends
It may seem odd for us to suggest that you consider what others may do when evaluating your own retirement goals, but hear me out on this. A recent study by realtor.com assessed 300 U.S. retirement destinations to suss out their Top 10 best, most affordable, retirement destinations and not only did Traverse City, Michigan make the list-it made the #1 spot on the list.
With realtor.com reporting 89.1 million visits to their site in November alone, it’s highly reasonable to believe that their findings could lead to an influx of other retirement-age buyers, all vying for similar home features, in the very area you’ve planned to purchase.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Whatever your home goals are, a trusted real estate advisor like us can work with you to find the best option. We’ll help you sell your current house and guide you as you buy the home that’s right for you and your lifestyle today. Let’s connect to explore your goals and opportunities in our local market.
