Homeowners stay in their homes 2x longer than 2 decades ago.
As you can see from newly released Redfin data:
- The length of time staying put in a home has nearly doubled since 2005, from 6 to 12 years. This phenomenon is one more factor (such as fewer construction starts) contributing to the lack of for-sale inventory.
- The ownership "tenure" is down slightly from the peak reached in 2020. Record-low mortgage rates in 2020/2021 motivated a large population segment to buy/sell homes, boosting transaction numbers for a time. Pandemic-fueled remote work prompted many Americans to relocate to a different part of the country, too.
What is Your Ownership Profile?
1 - Are you living in the home that you love? Or it suits you well? If so, we'll say you are in the satisfied group.
2 - Alternatively, are you in either of these begrudgingly "staying put" camps?
In the first staying-put camp, you have settled for a home you now regret purchasing. You bought during the pandemic home-buying competition under duress. 3/4 of Americans who purchased from 2020 to 2022 have regrets.
Or, in the other staying put scenario, is your family bursting at the seams in a home you have outgrown?
And despite being either frustrated or uncomfortable, you are going to stick it out and stay put for the foreseeable future. The interest rates were so much better when you purchased or refinanced, you can’t give up that advantage.
3 - Or, the final group, you are looking to remedy the situation and you may be looking to move.
What about "Tenure" in Nashville?
Interestingly, Nashville has posted a steady 8 years of tenure across the time periods of this study. Have a look at the linked Redfin article for the detail.
Redfin Senior Economist Sheharyar Bokhari states that certain population segments will be looking to buy/sell or move up. “Remote work is still much more popular than before the pandemic, so more people have the freedom to relocate or move further away from city centers. Plus, millennials–the largest generation in the U.S.–are in prime moving years, pushed to sell their homes by things like growing families and new jobs.”
No matter which profile you may align with, I would like to be helpful. At the very least, I would be happy to get you started on a RE Portfolio Review so you have a good idea of valuation and trends that we can update annually.
