Planning to Retire? Your Equity Can Help You Make a Move
Retirement is a momentous life event that often marks the beginning of new adventures and opportunities. One significant decision you may be contemplating is whether to sell your current home and find a new one that better aligns with your evolving lifestyle needs. Fortunately, you may be in a more advantageous position for this transition than you think. Here's why.
Assessing Your Time in Your Current Home
The length of time homeowners typically stay in their houses has evolved over the years. From 1985 to 2009, the average tenure was approximately six years. However, more recent data from the National Association of Realtors (NAR) reveals that homeowners now tend to stay in their homes for just over nine years, on average. This extended period of homeownership often corresponds with various life changes and milestones.
As you've lived in your home for an extended period, your life circumstances may have shifted, prompting different housing needs. If your current home no longer adequately meets those needs, you may discover more suitable options awaiting you.
Leveraging Your Accumulated Equity
Another crucial factor to consider when planning your retirement move is the equity you've built in your home. Over time, you accumulate equity as you make mortgage payments and as property values appreciate. The longer you've owned your home, the more equity you may have amassed. Data from the Federal Housing Finance Agency (FHFA) highlights this trend.
While real estate markets vary across regions, the national average demonstrates that homeowners who have resided in their homes for five years have witnessed an approximate 60% increase in their property's value. Those who have owned their homes for 30 years have experienced nearly a tripling in value.
Whether you aspire to downsize, relocate to a dream destination, or live closer to friends and family, your home equity can be a valuable resource. It can help you finance your retirement home and enable you to make this important transition smoothly.
No matter your specific objectives, a knowledgeable real estate agent can assist you throughout the process. They can help you sell your current property and guide you in acquiring a home that suits your evolving lifestyle and retirement goals.
As you embark on your retirement journey, don't underestimate the power of the equity you've accumulated in your home. Connect with a local real estate agent to assess your home's current value and explore how you can leverage your equity to find a home that aligns perfectly with your changing needs and aspirations in retirement.