This month I’m reflecting on how exciting buying your first home can be! It can feel like crossing a long-awaited finish line and give you a place to build your life. Perhaps your first home was where you got married, or where you welcomed your first child or pet into the family. A first home can be a significant and exciting milestone—a testament to your hard work and a place of comfort.
But for most people, your first house was never meant to be your forever home. It was a stepping stone. And if your life looks different today than it did when you first got the keys, you aren’t stuck. In fact, you might be in a much better position to move up than you realize.
Real estate is all about equity! And you’ve likely gained quite a lot in today’s market!
If you’ve been wondering whether now is the right time to move up, the first thing you need to look at is the equity you’ve quietly built over the years. This is the “cherry on top” of your homeownership journey. Every mortgage payment you’ve made and every year your home’s value has grown has increased your ownership stake in your property.
According to recent data, the average homeowner with a mortgage has built up roughly $295,000 in equity. While your individual number will vary, that amount can often serve as a significant down payment on your next home. It effectively bridges the gap between where you are and where you want to be, potentially reducing the amount you need to borrow and keeping your monthly payments manageable.
Another advantage is inventory levels for homes. This is true not only nationally, but especially in the northeast and New England – especially in Maine, New Hampshire and Massachusetts.
You might be hesitant because of headlines about the economy or interest rates, but it is important to remember that your current home is likely highly sought after. Starter home inventory remains tight across the country. Because there hasn’t been enough construction of entry-level housing to keep up with demand, homes like yours—which are perfect for first-time buyers—are in short supply.
This creates a “dream scenario” for sellers. Because these homes are in such high demand, their value appreciation has often outpaced other types of homes nationally. When you list your home, you aren’t just selling a property; you are selling a “stepping stone” to someone else who is just as excited to start their journey as you were when you first bought it.
The other side of this equation is where you are headed next. While starter home supply is tight, the broader market is showing signs of growth. Data shows that the number of homes for sale has been climbing overall, with more inventory entering the market at higher price points.
This means that whether you are looking for that extra bedroom, a dedicated home office, a bigger backyard for the family, or simply more room to breathe, today’s market may finally be providing the variety you’ve been waiting for. You may have more choices for your “move-up” home than you’d expect.
Let’s talk a little about Time in the Market vs. Timing the Market
One of the most common mistakes prospective buyers make is waiting for the “perfect” time to enter the market. As I’ve always said, “time in the market beats timing the market”. While it is understandable to be cautious about interest rates, the equity you gain by being a homeowner usually outpaces the temporary savings of waiting for a lower rate.
Furthermore, remember that your mortgage is not a permanent sentence. You always have the option to refinance down the road if rates drop, allowing you to secure a better deal once you are already in your dream home. Don’t let the noise of the headlines keep you from making a smart financial move.
Your first home did exactly what it was supposed to do: it gave you a place to start and a financial foundation to build upon. Now, it may be the key that helps you unlock your next chapter and take the next new and exciting step!
If your current home no longer fits the life you are living today, let’s connect. Whether you need advice on preparing your home for a quick sale—such as decluttering or making small improvements to maximize your curb appeal—or you just want to understand your options, I am here to help. You are likely closer to your next home than you realize.
Let’s turn your first home into the springboard for whatever comes next. Give me a shout today, and let’s find your next nest together!
