Unlocking Your Retirement Dreams: How Your Home Equity Can Make It Happen

Retirement marks a significant chapter in life, filled with opportunities for new experiences and adventures. If you're on the brink of retirement, one thought that might have crossed your mind is whether it's time to sell your current house and find a new home better suited to your evolving needs. The good news is that you're likely in a stronger position than you think. Here's why:

1. Assess Your Time in Your Current Home

Back in the late '80s to early 2000s, homeowners typically stayed in their houses for an average of six years. However, times have changed. According to the National Association of Realtors (NAR), since 2010, the average tenure in a home has extended to just over nine years.

This shift suggests that many homeowners have spent even more time in their current residences. With time often come life changes and milestones that can alter your housing needs. If your existing home no longer aligns with these new requirements, it might be time to explore the options available to you.

2. Unlocking the Power of Equity

One of the most compelling reasons to consider a move during retirement is the equity you've built in your current home. Equity is the difference between your home's current market value and the outstanding balance on your mortgage.

As you make regular mortgage payments and home prices appreciate over the years, your equity grows substantially. The longer you've been in your home, the more you've likely accumulated. The Federal Housing Finance Agency (FHFA) provides data to illustrate this point.

• For homeowners who have lived in their homes for just five years, the national average shows that their property value increased by nearly 60%.

• Astonishingly, those who've owned their homes for 30 years saw their home values nearly triple over that time.

Your accrued equity is a powerful financial resource that can facilitate your retirement goals, whether you want to downsize, relocate to your dream destination, or be closer to friends and family.

3. Realize Your Retirement Home Dreams

Now that you've assessed the time spent in your current residence and the equity you've gained, it's time to consider what your retirement home might look like. You might want to:

• Downsize to a cozier, more manageable space.

• Relocate to that idyllic beach town or serene countryside.

• Move closer to family or friends to enjoy their company.

No matter your retirement aspirations, a trusted real estate agent can help you navigate the process seamlessly. They'll assist in selling your current home and guide you towards finding the perfect home to match your evolving needs and lifestyle.

As you approach retirement, it's essential to evaluate the equity you've accumulated over the years in your current home. This asset can serve as the key to unlocking your retirement dreams, whether they involve a change of scenery, downsizing, or being closer to loved ones. Connect with a knowledgeable real estate agent to determine the value of your equity and chart a path toward a retirement that aligns perfectly with your goals and desires. Your retirement dreams are within reach, and your home equity can help make them a reality.