In recent years, the National Association of Realtors’ historical data has revealed that homeowners are staying in their homes an average of nine years, as compared to four to five years just 13 years ago. There are several reasons for this dramatic change.
When home prices took a big dive in the mid-2000s, many owners were forced to stay in place because of little to no equity in their homes. This pushed the five-year average tenancy up.
The length of homeownership among younger families, who typically relocate about every five years, has not caught up with older generations, who live considerably longer in their homes.
The size of homes has been increasing for the last 40 years, and in conjunction with that, family household sizes have been getting smaller. As a result, the need to keep moving up to larger homes has greatly diminished. Many find that after several years of owning the same home, their needs are still satisfied.
Today, some homeowners are not anxious to give up a comfortable loan balance with a good interest rate after having benefited from good appreciation and historically low interest rates. Staying where they are is more appealing. Other homeowners who may have an interest in selling may be dissuaded by the lack of supply of homes to buy and not being able to find a replacement residence.
Today’s credit standards are tighter, making qualifying for a mortgage more difficult for some of those who do wish to sell and buy another home. When homeowners are less likely to qualify for a new mortgage, they are more likely to have to stay where they are, contributing to the average length of homeownership in the market.
Many factors contribute to choosing to stay in a home or not. If you are considering buying or selling a home, call or email us today, and we can help you navigate each of them so you can make the decisions that are best for you.