Planning to Retire? Your Equity Can Help You Make a Move

Reaching retirement is a significant milestone in life, bringing with it a lot of change and new opportunities. As the door to this exciting chapter opens, one thing you may be considering is selling your house and finding a home better suited for your evolving needs.Fortunately, you may be in a better position to make a move than you realize. Here are a few reasons why.Consider How Long You’ve Been in Your HomeFrom 1985 to 2009, the average length of time homeowners stayed in their homes was roughly six years. But according to the National Association of Realtors (NAR), that number is higher today. Since 2010, the average home tenure is just over nine years (see graph below):This means many homeowners have been living in their houses even longer in recent years. When you live in a home for such a significant amount of time, it’s natural for you to experience changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.Consider the Equity You’ve GainedAnd, if you’ve been in your home for more than a few years, you’ve likely built-up substantial equity that can fuel your next move. That’s because you gain equity as you pay down your loan and as home prices appreciate. And, the longer you’ve been in your home, the more you may have gained. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below): While home prices vary by area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.Whether you’re looking to downsize, relocate to a dream destination, or move so you live closer to friends or loved ones, that equity can help. Whatever your home goals are, a trusted real estate agent can work with you to find the best option. They’ll help you sell your current house and guide you as you buy the home that’s right for you and your lifestyle today.Bottom LineAs you plan for your retirement, connect with a local real estate agent to find out how much equity you’ve built up over the years and plan how you can use it toward the purchase of a home that fits your changing needs.

Home Price Forecasts Revised for 2023 [INFOGRAPHIC]

Some HighlightsLast year, some housing experts projected a decline in home prices by the end of 2023. But that didn’t happen – inventory was just too low.While it’s normal for experts to re-forecast throughout the year, the good news for 2023 is that prices are no longer projected to decrease.Connect with your trusted real estate agent to find out what’s happening with home values in your local area.Sources https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/mortgage-finance-forecast-dec-2022.pdfhttps://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-aug-2023.pdfhttps://www.fanniemae.com/media/45801/displayhttps://www.fanniemae.com/media/48726/displayhttps://twitter.com/NewsLambert/status/1671900591113609216 (Morgan Stanley)https://twitter.com/NewsLambert/status/1671556169712672768 (AEI)https://www.zillow.com/research/data/https://www.zillow.com/research/housing-market-challenges-32923/https://ustoday.news/a-20-drop-in-house-prices-7-forecast-models-tend-to-crash-here-the-other-13-models-show-the-housing-market-in-2023/ (Wells Fargo)https://twitter.com/NewsLambert/status/1686959362563092480 (Wells Fargo)https://twitter.com/NewsLambert/status/1691799764466008217 (Goldman Sachs)https://pulsenomics.com/surveys/#home-price-expectationshttps://www.corelogic.com/intelligence/us-corelogic-sp-case-shiller-index-down-by-0-5-year-over-year-in-may-but-a-turning-point-may-be-ahead/https://view.e.fanniemae.com/?qs=

Get Ready for Smaller, More Affordable Homes

Have you been trying to buy a home, but higher mortgage rates and home prices are limiting your options? If so, here’s some good news – based on what Ali Wolf, Chief Economist at Zonda, has to say – smaller, more affordable homes are on the way:“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”In some ways, smaller homes are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today (see graph below):This graph also shows how the size of homes on the market changes seasonally. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move.That seasonality means, based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year.That’s great news because, as Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), states, the need for these types of homes has gone up recently:“. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”What Does This Mean for You?The seasonal trend of smaller homes coming to the market in the later months of the year, coupled with builders bringing smaller, more affordable newly built homes to the market right now, is good news – especially if you’re finding it difficult to afford a home. Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, says this about a potential increase in the availability of smaller homes:“It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”Bottom Line If a smaller, more affordable home sounds appealing to you, good news – they’re coming. To keep up with what’s available in your area, connect with a local real estate agent.