Reaching retirement is a momentous milestone in one's life, ushering in a plethora of changes and fresh opportunities. As you stand at the threshold of this exciting new chapter, one consideration that may be on your mind is the prospect of selling your current home and seeking a residence better aligned with your evolving needs.

The good news is that you might be in a more advantageous position for this transition than you might think. Here are several compelling reasons why:

Take a Moment to Reflect on Your Home's Duration

Between 1985 and 2009, the average duration homeowners spent in their homes was approximately six years. However, according to data from the National Association of Realtors (NAR), that average has risen in recent times. Since 2010, the typical tenure of homeowners in their residences has extended to just over nine years (as depicted in the graph below).

This means that many homeowners have been residing in their current homes for more extended periods lately. With prolonged residence comes a natural evolution in your life circumstances. As these changes and significant life milestones occur, your housing needs may also evolve. If your current home no longer aligns with these evolving needs, there could be more favorable options awaiting your consideration.

Contemplate the Accumulated Home Equity

Furthermore, if you've been in your home for a significant duration, you've likely amassed substantial home equity that can facilitate your next move. This equity accrues through mortgage payment contributions and appreciation in home values. The longer you've resided in your home, the more equity you may have accumulated. Data from the Federal Housing Finance Agency (FHFA) aptly illustrates this point (as shown in the graph below).

While real estate market conditions vary by location, the national average indicates that homeowners residing in their homes for five years witnessed an approximate 60% increase in home value. In contrast, homeowners with a 30-year tenure saw their home's value nearly triple over that period.

Whether your objectives entail downsizing, relocating to your dream destination, or moving closer to friends and family, this accumulated equity can provide valuable financial support. Regardless of your homeownership 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 property and guide you in acquiring a home that suits your current lifestyle and requirements.

In Conclusion

As you embark on retirement planning, let's connect to determine the extent of equity you've amassed over the years and devise a strategy for leveraging it towards the acquisition of a residence that seamlessly accommodates your changing needs. Your well-deserved retirement could be the perfect moment to explore new housing possibilities.