With the way the market has been for the past few years, people have started staying in their homes for longer than before. This has contributed to the lack of supply of homes on the market. This lack of supply, combined with higher interest rates, more college debt, higher taxes, and more credit card debt are keeping people in their homes. It is also keeping many people out of the market for longer while they save up for their dream home.
Another factor keeping families in homes longer is that the price to renovate/remodel homes is often less per square foot than buying another home. Once a remodeling project is completed, it can keep a family in a home for much longer as the home can meet their changing needs. It can also be a daunting prospect to live through a remodel, then think of moving up to another home that needs to be remodeled.
Many families think that they will buy a small home close in to the city, live in it for a few years, then move up to a bigger home farther out with better schools. This has traditionally how many families have approached home ownership. That model doesn’t happen as often anymore. The average homeowner has been moving less often per the US Census data which shows that only 11 percent of households changed homes in 2017, down from 13 percent in 2007. The National Association of Realtors data shows that families are staying in their homes for 10 years on average down from 6 years.
What all this means is that you need to make sure you are ready and that you take time and do the research with your Realtor. This way you can find the perfect home for you every time you move in case you will be there for at least 10 years.
To read the full article, check out the Charlotte Business Journal or their partnership with The New York Times.