Homeownership – The Facts

Homeownership is a cycle – think of it almost like a circle. All around the circle are items such as an apartment building, finances, things that are simply helping you work towards that goal of homeownership. Then, the middle of the circle is a larger home – the goal if you will. You may want to move into that larger home because your family is growing, or simply because that dream has now become a reality.

If you rent, or live in a smaller home, it’s easier when the children are small. Any of us that have kids are well aware of that fact – a growing family simply outgrows a home. Depending on the size of your family, that smaller home may work perfectly, or you may have to move on to allow that extra space. When kids go away to college, find their own living space, and become more independent – parents may find then that they no longer really need that larger home. However, during those “growing stages”, that larger home may be quite pertinent to your growing family.

As mentioned, once that growing family begins to shrink (kids move out, head out into the world on their own), parents may migrate once again to a smaller home until they enter an assisted living facility or nursing home. That of course may not always be the case, but it can be a reality. Another alternative that seems to be happening is for older homeowners to move in with their children or other family members. Some even update their home with equipment and safety devices which allow them to comfortably live in their own home in old age.

Here’s a pretty stunning fact. According to the 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 and by age 45, they can expect another 2.7 moves in their lifetime.

What about today’s real estate market? It’s no secret that there is currently a quite low housing inventory. One of the suspected reasons for that low housing inventory is that many homeowners are reluctant to move because their home will more than likely sell quite quickly. With the current situation of a shortage of homes, they may not be able to replace their current home with one that they want.

Another factor which is contributing to our low housing inventory is a lack of newer construction. Builders essentially haven’t kept up with demand for the past 20 years. Unfortunately, that is a pretty significant contributor to the housing situation we are all facing. It’s estimated that it would take two million new homes to be constructed per year for the next decade to get caught up, assuming that the housing demand doesn’t increase.

Other contributing factors include a longer tenure in homes due to owners simply not wanting to sell, and sellers with extremely low mortgage rates. Not all owners want to sell, and no one wants to be financed at a higher rate then they are currently paying!

No matter where you are in the cycle of homeownership, your real estate agent can provide you with important information and experience which is essential for making an informed decision, as well as a smooth move.

I can provide Insider Information on Fairfax VA homes for sale. Get you a FREE Market Snapshot Report of Your Northern Virginia Home’s Value, or  Search All Northern Virginia Homes For Sale. Put that data you need at the tips of your fingers!

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