You Don't Need A Big House, You Just Need a Space That Fits You

If you're a millennial, you might be thinking about purchasing a house. According to the National Association of Realtors , your generation is the largest group of homebuyers in the market now, and has been since 2014. (NAR). While many millennials are hoping to buy their first house, you may be one of the many who has outgrown your current residence.

You're not alone if this is the case. Many people's lives have changed dramatically in the last two years, and today's homeowners are rethinking what they really need in a house. A recent Wall Street Journal states:

“They say the pandemic and the emergence of remote work accelerated millennial home-buying trends already under way. . . . Millennials who already owned homes traded up for more space.”

So, if you’re working remotely now or simply have a growing need for additional space, it may be time to move. And even if you purchased your current home sometime over the last few years, you can still move into a different one that has the space and features you’re looking for. That’s because there’s a good chance you have more equity than you realize. As Diana Olick, Real Estate Correspondent for CNBC, notes:

So, whether you're currently working remotely or just need more space, it might be time to move. Even if you just recently bought your existing house, you may still move into a new one with the size and features that you desire. That’s because there’s a high possibility you have more equity than you know. As CNBC's Real Estate Correspondent Diana Olick points out:

“The stunning jump in home values over the course of the Covid-19 pandemic has given U.S. homeowners record amounts of housing wealth. . . . Even homeowners who weren’t listing their properties for sale were gaining equity. About 42% of homeowners were considered equity-rich at the end of last year, meaning their mortgages were half or less than half the value of their home.”

Growing your equity might be your biggest motivation for your next move, especially if you want to buy a bigger house. When you sell your present home, the equity you get can be utilized to put toward a down payment on your future property.

In other words, you may have more purchasing power than you know - making a move to a larger home a viable choice. That, along with your changing demands, may make moving now more appealing than ever.

Bottom Line

If you're a millennial thinking of relocating this year, you're not alone. Let's talk about the equity you have in your existing house and the different opportunities it can provide.