When it comes to homeownership, the National Association of Realtors (NAR) tracks and keeps a large amount of data. One of the biggest shifts they have seen when examining historical data is in the median tenure — in other words, the length of time a family stays in a home before moving. Over the past twenty years (1985-2008) the median tenure had averaged exactly six years according to the NAR’s data. However, in the years since 2008 the average has increased to nine years marking an increase of nearly 50%.
What has led to the drastic change?
Home prices fell during the housing crisis and resulted in many homeowners being “underwater” on their mortgage, meaning they owed more than the home was worth. The uncertainty of the economy at that time is believed to have resulted in homeowners being more conservative when it came to making a move.
Over the last several years home prices have been rising and more homeowners are now seeing positive equity in their home. The economy is strengthening leaving homeowners with a much more positive outlook.
Data shows that today typical sellers are moving to accommodate a growing family or to move to an area with better school districts. Young families may be the typical seller of today although the number of young homeowners still has not caught up with those of previous generations.
Now what for housing?
It is believed that a large number of current homeowners are not in a house right now that best fits their current family needs and circumstances. This could be baby boomers who are now empty nesters looking to downsize or growing families looking for larger homes.
These homeowners are ready to make a change and move. With the number of available homes on the market in short supply, there are still challenges in today’s housing market. Lack of inventory means now is the perfect time to sell a home.
The Ferzoco Group are experts in real estate from Ocean City to Cape May. Real estate is one of the biggest investments of your life and The Ferzoco Group knows what it takes for you to take that leap of faith in real estate. We provide you with the tools, professional service, and resources it will take for you to live the dream. Contact us here, or give us a call directly at (609) 399-5454. We are here to help you with all your real estate needs.