Considering Retirement? Here's Why Relocating Could Be Your Ideal Next Move
Contemplating retirement or having recently retired, now is an opportune moment to assess whether your current residence aligns with the upcoming chapter of your life.
Fortunately, you might be more poised for a change than you realize. Consider the following factors as you weigh the decision to sell and embark on a new journey.
Duration Of Your Residency
Between 1985 and 2008, homeowners typically spent an average of just six years in their homes. However, according to the National Association of Realtors (NAR), the duration of homeownership has been on the rise in recent years, indicating that many individuals are residing in their homes for extended periods (refer to the graph below).
Residing in a home for an extended period naturally accompanies various life changes and milestones. Over time, your evolving needs may outgrow the suitability of your current residence, presenting you with potentially more favorable alternatives.
Amount Of Equity You've Accumulated
Moreover, the duration of your homeownership plays a crucial role. If you've spent several years in your current house, you've probably accumulated substantial equity, providing a valuable resource for your next housing transition. This is particularly true as the longer you've been in your home, the more likely it has appreciated, as demonstrated by data from the Federal Housing Finance Agency (FHFA) depicted in the graph below.
While the appreciation of home prices varies across states and localities, the national average reveals a notable trend: homeowners who have resided in their homes for five years typically witness a nearly 60% increase in property value. Moreover, those who have owned their homes since 1991 have seen their property values more than triple over that period.
Evaluate Your Retirement Goals
Whether you aim to downsize, relocate to an ideal destination, or be in closer proximity to loved ones, your accrued home equity can serve as a vital asset in achieving these homeownership goals. According to the National Association of Realtors (NAR), a significant motivator for recent home sellers is the desire to be nearer to family and friends.
Regardless of your homeownership aspirations, a reliable real estate agent can collaborate with you to identify the optimal solution. They will assist you in selling your current property and navigating the process of acquiring a new home that aligns with your current lifestyle.
Retirement often ushers in significant life changes, impacting housing needs. Connect with us to explore available homes in your area and informed decisions based on your evolving needs.