What's Next for the Empty Nester?
Coldwell Banker Residential Brokerage
For many families, this month has brought with it some significant milestones; senior prom, the last baseball game played on the high school team, and of course graduation. According to statistics posted by the National Center for Education, 3.1 million high school seniors are expected to graduate this year. Teenagers across the nation will eagerly pack their belongings and move from home towards their bright new futures.
This leaves many empty nesters planning their bright new futures as well and wondering what to do with the family home. Is it the right time to sell? Will the sale enable the family to afford college tuition and purchase another home at the right price and size? Will there be enough to purchase the dream vacation home as well? There are numerous factors to consider when making a decision on one of the largest investments a family will make.
Lawrence Yun, chief economist of the National Association of Realtors, said in a recent release that existing-home sales nationwide have been underperforming by historical standards and will rise gradually but unevenly. Though this statement is true, it is important to keep various factors in perspective and understand how they impact you as a home seller or buyer in todayâ€™s environment.
According to NAR, the median price of existing homes increased an average of more than 6% every year between 1968 and 2008, with home values nearly doubling every 10 years. If a homeowner purchased their home 10 or more years ago, the home could have a wealth of equity and offer a significant return on investment if sold in todayâ€™s market.
Additionally, the market is ripe for homebuyers. Affordability is the best that it has been in years and mortgage rates are still relatively low. Five-plus years ago, it was the prime time to approach real estate as a financial short term investment. Now is the time, as it traditionally has been, to buy a home because one wants a solid investment for the future.
To learn if the time is right for you, call me to discuss your options. Using information included in the attached graph, along with additional data gathered from your specific community, your I can provide you with and explain the precise factors that could impact you in your decision making process. You may just discover that now really is the perfect time to make your move as well.