If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life.
Fortunately, you may be better positioned to make a move than you realize. Here are a few things to consider as you decide whether or not to sell and make a move.
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, it’s natural for you to experience several 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.
How Much Equity You’ve Gained
Additionally, if you’ve been in your house for over a few years, you’ve likely built up significant equity to fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown 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 that the typical homeowner who’s been in their house for five years saw it increase by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value.
Consider Your Retirement Goals
Whether you’re looking to downsize, relocate to a dream destination, or be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR shares that for recent home sellers, the primary reason to move was to be closer to loved ones.
Whatever your home goals are, a trusted real estate agent can work with you to find the best option. They’ll help you put your current house on sale and guide you through buying the right home for your lifestyle today.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect with Chicago’s top-rated real estate brokers to explore the available homes in our area.
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