Whether you are a renter who is searching for your dream home or a homeowner who feels like your only option is to renovate, you both have something in common – feeling stuck in place.
According to data from the National Association of Realtors the average amount of time that a family stays in their home remained at 10 years in 2017. This mark ties the highest marks set in 2014 and 2016. Back in 1985, when data was first collected on this subject, homeowners stayed in their homes for an average of only 5 years.
There are many reasons why homeowners have decided to stay and not sell. Inventory levels have fallen near multidecade lows and home prices have risen to records. Therefore, a lot of homeowners are choosing to stay and renovate, which makes it more difficult for renters to enter the market.
Historically, a standard market (in which prices increase at the rate of inflation) requires a 6-7-month supply of inventory. There has been low supply since August of 2012. Over the course of the last 12 months, inventory has stayed between a 3.5 to 4.4-month
So, don’t give up if you feel stuck and really want to move on. If you are looking to move-up to an existing luxury home, there are deals to be had in the higher-priced markets. Demand is strong in the starter and trade-up home markets which means that your house will sell quickly. Work with your real estate agent to build in contingencies that allow you more time to find your dream home – the right buyer will wait.