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How Long Do Most Families Live in a House in Bergen County?

How Long Do Most Families Live in a House in Bergen County?

How Long Do Most Families Live in a House in Bergen County?

If you are looking to buy a home in Bergen County you probably plan to stay in the home for a long time.  You also may be buying a starter home and plan to upgrade in a few years when you have more to spend.  Whatever you motivation for entering the Bergen County Real Estate Market you need to be realistic about your finances and have a game plan.  Today we will discuss a trend that we have seen over the last few years of families staying in their homes longer than they had in the past.

Finding the right home can be complicated if you don’t have the right team working for you.  The Gibbons Team is committed to assisting buyers find the ideal home for their needs.  We negotiate aggressively to get the best deal and walk you through the entire process with 5 Star Service.  To start your home search visit our Home Search Site where you will find every home listed on the market updated daily along with listing alerts.  Get your home search started today!

The National Association of Realtors (NAR) keeps historical data on many aspects of homeownership. One of their data points, which has changed dramatically, is the median tenure of a family in a home, meaning how long a family stays in a home prior to moving.

How Long Do Most Families Live in a House?

As the graph below shows, over the last twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2014, that average is almost ten years – an increase of almost 50%.

How Long Do Most Families Live in a House? | MyKCM

Why the dramatic increase?

The reasons for this change are plentiful!

The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

With home prices rising dramatically over the last several years, 95.3% of homes with a mortgage are now in a positive equity situationaccording to CoreLogic.

With the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

One other reason for the increase was brought to light by NAR in their 2018 Home Buyer and Seller Generational Trends ReportAccording to the report,

“Sellers 37 years and younger stayed in their home for six years…”

These homeowners, who are either looking for more space to accommodate their growing families or for better school districts to do the same, are likely to move more often (compared to typical sellers who stayed in their homes for 10 years). The homeownership rate among young families, however, has still not caught up to previous generations, resulting in the jump we have seen in median tenure!

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstance; they could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple living in a one-bedroom condo planning to start a family.

These homeowners are ready to make a move, and since a lack of housing inventory is still a major challenge in the current housing market, this could be great news.

Source: Gibbons Team KCM Blog

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