Retiring Soon? Why Moving Might Be the Perfect Next Step
If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life. Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about as you decide whether or not to sell and make a move. How Long You’ve Been in Your Oklahoma Home From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are living in their houses even longer (see graph below): When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that Oklahoma 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. How Much Equity You’ve Gained Additionally, if you’ve been in your house for more than a few years, you’ve likely built-up significant equity that can fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown in value due to home price appreciation. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below): While home price growth varies by state and local 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 since 1991 saw it more than triple in value over that time. Consider Your Retirement Goals Whether you're looking to downsize, relocate to a dream destination, or simply be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR shares that for recent home sellers, the primary reason to move was to be closer to loved ones. 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 Oklahoma house and guide you through buying the home that’s right for your lifestyle today. Bottom Line Retirement can bring about major changes in your life, including what you need from your Oklahoma home. Connect with a local real estate agent to explore the available homes in your area.
Your Home Equity Can Offset Affordability Challenges
Are you thinking about selling your Oklahoma house? If so, today’s mortgage rates may be making you wonder if that’s the right decision. Some Oklahoma homeowners are reluctant to sell and take on a higher mortgage rate on their next home. If you’re worried about this too, know that even though rates are high right now, so is home equity. Here’s what you need to know. Bankrate explains exactly what equity is and how it grows: “Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.” In other words, equity is how much your home is worth now, minus what you still owe on your home loan. How Much Equity Do Oklahoma Homeowners Have Now? Recently, your equity has been growing faster than you might think. To help contextualize just how much the average homeowner has, CoreLogic says: “. . . the average U.S. homeowner now has about $290,000 in equity.” That’s because, over the past few years, home prices went up significantly – and those rising prices helped your equity to accumulate faster than usual. While the Oklahoma market has started to normalize, there are still more people wanting to buy homes than there are homes available for sale. This high demand is causing home prices to go up again. According to the Federal Housing Finance Agency (FHFA), the Census, and ATTOM, a property data provider, nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or have at least 50% equity (see chart below): That means nearly 70% of homeowners have a tremendous amount of equity right now. How Equity Helps with Your Affordability Concerns With today’s affordability challenges, your equity can make a big difference when you decide to move. After you sell your house, you can use the equity you've built up in your home to help you buy your next one. Here’s how: Be an all-cash buyer: If you've been living in your current home for a long time, you might have enough equity to buy a new house without having to take out a loan. If that's the case, you won't need to borrow any money or worry about mortgage rates. The National Association of Realtors (NAR) states: “These all-cash home buyers are happily avoiding the higher mortgage interest rates . . .” Make a larger down payment: Your equity could be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won't have to borrow as much money so today’s rates become less of a sticking point. Experian explains: “Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender.” Bottom Line If you're thinking about moving, the equity you've built up can make a big difference, especially today. To find out how much equity you've got in your current Oklahoma house and how you can use it for your next home, get in touch with a trusted real agent.
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 Oklahoma 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 Home From 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 Gained And, 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 in Oklahoma and guide you as you buy the home that’s right for you and your lifestyle today. Bottom Line As 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.
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