Arriving at retirement marks a noteworthy milestone, ushering in numerous changes and fresh opportunities. As the door to this exciting chapter swings open, a consideration that might cross your mind is selling your house to discover a home more fitting for your evolving needs.

Thankfully, you might find yourself in a more advantageous position for this transition than you initially thought. Here are a couple of reasons why.

Consider How Long You’ve Been in Your Home

Between 1985 and 2009, homeowners, on average, resided in their homes for approximately six years. However, as per the National Association of Realtors (NAR), the current trend reveals an extended duration. Since 2010, the average home tenure has extended to just over nine years (refer to the graph below):

This indicates that in recent years, a considerable number of homeowners have extended their residence in their houses. When you inhabit a home for an extended period, it's inevitable that you'll undergo various changes and milestones while there. As these life events unfold, your needs may evolve. If your present home no longer aligns with those changing needs, there might be more suitable options awaiting your consideration.

Consider the Equity You’ve Gained

Moreover, if you've resided in your home for an extended period, chances are you've accumulated considerable equity that can empower your next transition. This accrual happens as you make mortgage payments and as property values appreciate. The duration of your residence plays a crucial role, with more substantial gains likely for those who have stayed longer. This trend is highlighted by data from the Federal Housing Finance Agency (FHFA) (refer to the graph below):

Although home prices can vary regionally, the national average reveals that homeowners who have resided in their homes for five years typically witness an increase in value of nearly 60%. Furthermore, those who have owned their homes for 30 years, on average, observe an almost threefold rise in value during that period.

Whether you're contemplating downsizing, moving to a dream location, or relocating to be closer to friends or family, your accrued equity can be a valuable asset. Regardless of your housing 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 provide guidance in acquiring a home that aligns with your current lifestyle and preferences.

Bottom Line

In preparing for your retirement, reach out to a local real estate agent to assess the equity you've accumulated over the years. Collaborate with them to strategize how you can leverage this equity towards acquiring a home that aligns with your evolving needs.