Reaching retirement heralds a time of change and an abundance of new opportunities. One significant decision during this period might involve selling your current home to find another that better accommodates your changing needs. The good news is that you might be more prepared for this move than you think. Here is why.
The average period homeowners retained their homes has seen a surge in recent years. From an average of about six years between 1985 and 2009, the tenure extended to slightly above nine years since 2010 according to data from the National Association of Realtors (NAR).
This trend indicates that many homeowners have stayed in their homes for a substantial duration, adapting and evolving through various life phases while residing there. Given the change in needs that accompany different life milestones, you might find that your current home no longer serves your requirements, ushering in the opportunity to explore better options that align with your present needs.
The extended period in your home likely means that you have accumulated significant equity, a resource that can significantly aid in planning your move. Home equity builds up as you reduce your loan amount and as the value of your home appreciates over time.
National data from the Federal Housing Finance Agency (FHFA) paints a promising picture, where homeowners witnessed nearly 60% appreciation in their home value over five years. This percentage jumps dramatically for those who have owned their homes for 30 years, with the home value nearly tripling in that span.
This accrued equity stands as a powerful tool, whether your plans involve downsizing, moving closer to your loved ones, or relocating to a dream destination. A reliable real estate agent can guide you in leveraging this equity optimally, helping sell your current home and finding a new one that resonates with your lifestyle today.
Retirement planning is a pivotal process, and understanding how to use your built-up home equity can play a crucial role in facilitating a smooth transition into this new chapter of life. Let’s collaborate to discern the exact amount of equity you have garnered over time, and devise a plan to channel it towards securing a home that caters to your evolving needs.
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