Moving to a Larger Home
An interesting homeownership cycle begins with a starter home and progresses to larger and smaller homes throughout a person’s lifetime. Within a few years after purchasing their initial home, they might move up to a little larger house. They could simply want a larger home and can afford it, or their increased family size may be motivating the move.
While the children are small, a homeowner can probably get by with less space. As the children grow or with the addition with more children, the need for more room becomes more pressing. Depending on the size of the family, this will last some time. But the cycle goes the other way too. As children leave for college or find their own living space, parents may find that they no longer need the larger home.
Moving to a Smaller Home
In the interest of saving money or possibly convenience, owners may migrate from a larger home to a smaller home. This occurs before they consider a move to an assisted living facility or possibly, a nursing home. Some homeowners even retro-fit a smaller home with equipment and safety devices that will allow them to continue to live independently, Another alternative, many homeowners are electing is to move in with their children or other family members.
How Many Times We Move In Our Lifetime
According to the US Census Bureau’s American Community Survey, a person in the United States can expect to move 11.7 times in their lifetime. When that person is 18 years old, they can expect to move another 9.1 times. By age 45, they can expect another 2.7 moves in their lifetime.
How the Homeownership Cycle Affects Available Home Inventory
One of the suspected reasons affecting the low housing inventory in America now is due to a change in the homeownership cycle. Homeowners who would usually move at this time don’t because of current constrained inventories. They are afraid their home will sell and they may not be able to replace it with what they want. Builders have not kept up with the demand in the past twenty years. This has been a major contributor to the low inventory that housing is currently experiencing. Estimates show that it will take two million new homes a year for ten years to meet current levels of demand.
There are also other factors involved like the fact that since 2007, the owner’s tenure in their home has more than doubled from five years to 10.6 years. People are staying in their homes longer which means the homes are not coming on the market for sale.
Another consideration is that sellers with extremely low mortgage rates are reluctant to buy another house which would have to be financed at a higher rate than they are currently paying.
Get Help When You Make Your Move
Sound Investments, Inc. can provide important information and has the experience essential to making a smooth move. We can help you – regardless of where you are in the homeownership cycle. Having the facts reduces the risk of unexpected outcomes. Click here to contact us now if you have questions about selling your home.