Before You Decide You Can’t Afford Your Next Home… Look at This

Buying your first home was a huge milestone. It was the place where new memories began, where life started taking shape, and where many of your biggest moments unfolded. Whether it was your first holiday together, the arrival of a new family member, or simply having a place to truly call your own, that home served an important purpose.

But if you’re wondering whether you can afford your next home, don’t assume the answer is no. Your current home may have built more equity than you realize, and today’s market could offer more opportunities to move up than you expect.

For many homeowners, the first home isn't meant to be the last one.

As life changes, your housing needs often change too. If you've been wondering whether you've outgrown your current home, you may be in a better position to move than you realize.

Starter Homes Continue To Be in High Demand

One of the biggest advantages first-time homeowners have right now is that affordable, entry-level homes remain in short supply. Even though builders have been working to add more smaller homes to the market, inventory still hasn't caught up with demand.

That means homes like yours continue to attract strong buyer interest.

If you've been considering selling, this limited supply could work in your favor.

More Choices Are Opening Up for Your Next Home

While starter homes remain scarce, the overall number of homes available for sale has been increasing. That gives move-up buyers more options than they've had in recent years.

As Nadia Evangelou, Principal Economist and Director of Real Estate Research at the National Association of Realtors (NAR), explains:

“Too much of the inventory available today remains concentrated at higher price points, leaving a shortage of options for entry-level and middle-income buyers.”

If you've been dreaming about more square footage, an extra bedroom, a dedicated office, a larger yard, or simply a home that better fits your current lifestyle, today's market may provide more opportunities to make that happen.

At the same time, your current home could be exactly what today's buyers are searching for. Zillow explains why:

“Starter home value appreciation has outpaced other types of homes nationally, mostly because they’re so in demand.”

That combination of strong demand for your current home and growing inventory of move-up homes creates an opportunity many homeowners haven't had in quite some time.

Don't Forget About the Equity You've Built

Another major advantage is the equity you've accumulated over the years.

Every mortgage payment and every increase in your home's value has helped build your financial position. According to Cotality, the average homeowner with a mortgage has approximately $295,000 in equity. While every homeowner's situation is different, that equity could provide a substantial down payment on your next home or reduce the amount you need to finance.

When you put everything together, today's market offers several encouraging advantages:

• Your current home is in high demand.

• There are more homes available if you're looking to move up.

• The equity you've built can make your next purchase more affordable.

Your first home has already done exactly what it was meant to do, it gave you a place to begin building your future. Now it may also be the key to helping you reach your next chapter.

Bottom Line

If your current home no longer fits the way you live today, it may be worth exploring your options. You could have more buying power and more opportunities than you expect.

Whether you're thinking about upsizing, relocating, or simply wondering what your home is worth in today's market, I am here to help. Reach out today for personalized guidance and expert advice to help you make your next move with confidence.

*Information sourced from Zillow, NAR, & Keeping Current Matters