Is It Time to Find a New Place to Call Home?
You're not alone if you've lived in your house for more than five years. Homeowners are staying put for considerably longer than historical averages, according to recent statistics from First American (see graph below):
Before 2008, as shown in the graph, homeowners sold their homes after an average of only five years. That number has more than doubled in the last ten years. This is referred to as your tenure in the housing sector.
To fully comprehend tenure, it's necessary to comprehend what motivates people to change jobs. An article in The Balance delves into some of the most common reasons people decide to sell their homes. It reads:
“People who move for home-related reasons may require a larger home or one that is better suited to their requirements,...” Wanting a nicer home, moving to a newer property to avoid making repairs on the old one, or cashing in on existing equity are all financial motivations for relocating.”
If you've lived in your house for longer than most, you're probably putting off dealing with one, if not several, of the reasons why others opt to relocate. If this describes you, here are some things to think about:
It may be time to re-evaluate your home if your needs have changed.
Our demands can change quickly, as we've seen in the past year. That means that the longer you've lived in your home, the more likely it is that your requirements have changed. Relationship and work changes, according to The Balance, are two personal variables that may cause your house to no longer fit your needs.
Many employees, for example, recently learned that they will be working remotely indefinitely. If this is the case, you may require additional space for a separate home office. Others decide to sell because the number of people living in their home fluctuates. We're spending more time at home now than ever before. Consider whether your home can truly provide you with everything you require in the future.
It's generally more cost-effective to sell your home and relocate.
One of the most significant advantages of homeownership is the accumulation of equity in your home over time. You may not know how much equity you have in your home if you've been there for several years. Homeowners earned an average of $33,400 in equity over the past year, according to CoreLogic's newest Homeowner Equity Report.
When you sell your house and buy a new one, the equity you've built up, along with today's cheap mortgage rates, can help you afford a substantial upgrade. Alternatively, if you choose to downsize, your equity can help you put down a larger down payment and cut your monthly payments throughout the duration of your next loan. Whatever the case may be, there are substantial financial advantages to selling in today's market.
If you've been in your house for at least 5-10 years, it's time to consider your alternatives. Because of today's cheap rates and your built-up equity, you may be able to meet your changing needs. Let's talk if you think it's time to sell.