Embracing Change: Why Retirees Should Consider Selling Their Homes

Reaching retirement is a momentous milestone in life, marking the beginning of a new chapter filled with change and opportunities. As this exciting phase unfolds, one significant decision you might contemplate is selling your current house and seeking a new home better suited to your evolving needs. Surprisingly, you may find yourself in a more advantageous position to make this move than you initially thought. Here are a few compelling reasons why.

Reflect on the Duration of Your Homeownership

Between 1985 and 2009, homeowners typically resided in their houses for approximately six years. However, recent data from the National Association of Realtors (NAR) reveals an extended average home tenure since 2010, now averaging just over nine years (see graph below):

This extended period of homeownership often coincides with various life changes and milestones. As your life evolves within the confines of your current home, your needs may naturally transform as well. If your present residence no longer aligns with these evolving requirements, you may discover better-suited housing options awaiting your consideration.

Harness the Equity You've Accumulated

Furthermore, if you've owned your home for an extended period, you've likely amassed substantial home equity, which can serve as a valuable resource for your next housing venture. Equity accumulates as you pay down your mortgage and as property values appreciate over time. The longer you've held your property, the more significant this equity becomes. Data from the Federal Housing Finance Agency (FHFA) underscores this point (see graph below):

While home price appreciation varies by region, the national average indicates that homeowners who have resided in their homes for five years witnessed an approximate 60% increase in their property's value. In contrast, those who have owned their homes for 30 years experienced their home's value nearly tripling over that time.

Whether your retirement aspirations involve downsizing, relocating to a dream destination, or living closer to loved ones, this accrued equity can be a valuable asset. Regardless of your housing goals, a trusted real estate agent can collaborate with you to identify the optimal course of action. They will assist in the sale of your current residence and guide you toward a new home that aligns seamlessly with your current lifestyle and requirements.

In Conclusion

As you embark on your retirement journey, it's prudent to engage with a local real estate agent to ascertain the extent of equity you've cultivated over the years. This knowledge will empower you to strategically leverage your assets toward the acquisition of a home that caters to your evolving needs. Embrace the opportunities this new phase of life offers, and trust in the expertise of a real estate professional to help you navigate this exciting transition