Why Relocating Could Be Your Dream Retirement

If retirement is on your mind or you've already retired in the current year, now is an opportune moment to assess whether your current residence aligns with the next phase of your life.

Fortunately, you might be in a better position than you realize to make a move. Here are a few factors to consider as you decide whether or not to sell and relocate.

Decades Under One Roof

Between 1985 and 2008, homeowners typically resided in their homes for an average of six years. However, the National Association of Realtors (NAR) reports a current upward trend in this duration, indicating that many homeowners are now extending their stays in their houses (refer to the graph below).

Residing in a home for an extended duration naturally involves undergoing various life changes and milestones within that space. As these transitions occur, your evolving needs may no longer align with your current home. In such cases, better options might be available to meet your changing requirements.

Uncover Your Equity's Potential

Moreover, if you've resided in your residence for an extended period, you've probably amassed substantial equity that can empower your upcoming transition. This is attributed to the increasing value of your home over time, driven by home price appreciation. Data from the Federal Housing Finance Agency (FHFA) underscores this trend (refer to the graph below).

Though the rate of home price growth differs across states and localities, the nationwide average indicates that homeowners residing in their homes for five years typically witnessed a value increase of nearly 60%. Furthermore, homeowners who have owned their homes since 1991 experienced a value surge of more than triple during that period.

Personalized Retirement Journey

Whether you aim to downsize, move to an ideal destination, or be in proximity to loved ones, your home equity can play a crucial role in achieving your homeownership aspirations. According to the National Association of Realtors (NAR), recent home sellers identified being closer to loved ones as the primary motive for their relocation.

No matter what your homeownership aspirations may be, a reliable real estate agent can collaborate with you to identify the optimal solution. They will assist you in selling your existing property and navigate the process of purchasing a home that aligns with your current lifestyle.

Bottom Line

Retirement can usher in significant life changes, influencing your housing needs. Reach out to a nearby real estate agent to explore the homes currently available in your vicinity.