6 Signs it May Be Time to Move

About once every ten years homeowners sell their current home and move into another according to recent studies. For some people there are certain signs that motivate them into selling their home. 

It is a decision that you have to carefully consider because changing your address will involve the job of selling and buying a home.

When is it the right time for you to downsize or upgrade?

The following are some of the best tips on whether it's the proper time to change homes.

1. You have lived in your home for at least five years.
Popular opinion states that you should own a home for a minimum of five years before you can sell without losing money. The costs of buying and selling a home do add up so it's best if your property has appreciated enough in order for you to purchase something new as pay the real estate agents' commission from three-to-six percent.

Of course, you can choose to sell it on your own to save commission. However, studies have shown, your home  will sell for more money with a real estate agent instead of without.

2. Your home's value increased big time due to being in a seller's market.
 It makes perfect sense to sell right now. On the other hand, the next home you buy may have also increased a lot as it's in the same market. So, you need to be sure the location you're moving to hasn't had a similar spike in prices.

Some of typical signs you are in a seller's market include:

•           Price per square foot is increasing in your neighborhood.

•           Shorter days on market for properties.

•           There are buyer bidding wars happening.

3. Your home is bleeding your bank account above and beyond what you like.
If your home is costing you greater than 36% of your monthly income before taxes, you may be in a situation where your housing costs are way past your budget.

A great deal of homeowners unintentionally get themselves in a position where their mortgage payment and other household expenses are too much to deal with. And perhaps you are handling it well, but if you are stressed about it, it may be time to sell and get yourself a more affordable home, townhouse, or condo.

One solution is making more income.  Will you get a salary increase soon? Are you comfortable with renting out a room to help make ends meet?  A lot of people stretch themselves too much just to get into the house. Once the excitement of owning your own home is gone,  the pressure will start building to do what it takes to reduce the mortgage payment.  Living house rich and cash poor can quickly become a miserable lifestyle.

4. Your neighbors just sold their home for an outstanding price.
When your neighbors sell their home for a price far beyond what you thought it was worth, it is hard not to consider if you sell for the same or more.

Contact a local real estate agent to see if your home may also sell for that price, or more. This is called doing your research with a local expert. 

5. Your life has changed considerably from the time you paid for your home.
There may come a time where it doesn't really suit your needs anymore. You may have bought a home with two or three stories and it has become physically difficult as you aged. You may raised your kids in the home, and now they are all grown up and moved out and you're close to retirement.  Whatever the reason may be, a move may be just what you need to do.

6. You want to downsize from your big home and own a vacation home
An increasing number of people are choosing to downsize from their big home and be the owner of two smaller homes. In many cases, the second home will be located in a vacation area.

Buying a vacation property can be a beneficial idea. One benefit is, a vacation home is a great place to spend time away from the hustle and bustle of the congested city, and also become a superb investment.

Top Reasons for Buying A Home During The Holidays:

There’s a variety of reasons for buying a home during the holidays.
The advantages of purchasing at this time of year include less competition for homes, year-end tax advantages, lower home prices and faster closings.

Plan For Holiday Savings
You should understand and not deviate from what you want to achieve whenpurchasing a home over the holidays to get it for the best price and capitalize on year-end tax incentives. By making use of these strategies, you can begin the new year celebrating with savings in your new home.

According to data from Trulia, October and December every year, starter home inventory in the U.S. will get a 7% increase. According to a recent analysis of more than 18 million single-family home and condo purchases over the last five years, there are 10 days a year when buyers can count on big savings.


"In the hot home markets during the past five years, only 10 days of the year offer discounts below estimated market value. There's seven days in December, and one each in October, November and February,” according to a report by ATTOM Data Solutions.

The single best day to save on a home is the day after Christmas, December 26th.  Data compiled by ATTOM shows that buyers willing to close on a home purchase the day after Christmas realize the biggest discounts below full market of any other day of the year.  On average they save approximately $2,500. If a homeowner has their home listed for sale over Christmas, that person is absolutely serious about selling that home. So, why not write an offer and see how the negotiations go from there.


More Motivated Sellers
It shouldn't be difficult over the holidays to locate properties that are poorly maintained. Lots of sellers who list their homes for sale during December are very interested to sell their property.
Some reasons for doing this are because of a recent divorce, loss of a family member, challenging financial times, a job relocation or other personal change of circumstances.  People are more inclined to be generous during Christmas, even though it could mean reducing the asking price.

For another group of motivated sellers, builders and investors, their motivation to sell is business related as opposed to personal.  Similar to car dealers at year end, inventory needs to be moved so you can get a holiday deal on a home with builders upgrades on flooring, paint, fixtures, and cabinets.
The longer an investor or builder owns the house, the more costs they'll pay to maintain it. Just because you are happy beyond belief about the price, don't forego a home inspection by a professional.

Less Competition from Home Buyers
Fewer buyers are out looking at homes during the week of Christmas, so the possibility of multiple offers or any competition in the slightest is very low.
Most buyers take a break from searching for a home to celebrate the holidays, go to parties, or getting ready to host visiting guests.  Then there's the weather in December which is usually colder and not so appealing to look at homes.

Tax Advantages
Buying a home in December can help you save in April and going forward. Homeownership comes with many tax benefits, starting off with deducting interest on your mortgage to property taxes. Although, the maximum property tax deduction is $10,000. The recently passed House bill permits homeowners to write off the mortgage interest up to $500,000, which is fifty-percent less than it was in 2016.

Always check with your state as they may have a homeowner's tax exemption.  Look into possible closing fees that are tax-deductible when you itemize.  The best person to find out from is your tax accountant.

Report: Home Prices in Orange County Rose 260+% from 1998 to 2018

A recent housing industry report from Zillow revealed that home prices in the L.A. metropolitan area appreciated by around 244% from 1998 to 2018. That was among the biggest gains of all major metro areas in the U.S., during that 20-year period of time.

Orange County Home Values Have Increased Over 260% in 20 Years
We hear a lot about home-price changes from year to year. But what about the long term? Sometimes, it’s interesting to see how much home values rise during a 10- or even 20-year period.

Among other things, this allows us to calculate average appreciation rates without them being overly influenced by short-term spikes or dips. We can also compare one city to another, to determine where prices have risen the most over time.

Zillow recently analyzed data from the L.A. almanac to highlight how home prices have changed in Southern California and more than 30 other major metropolitan areas throughout the U.S., spanning a course of 20-years. To be precise, they calculated the difference between the median home value in each metropolitan area.

According to this research, a home purchased in Orange County for $262,900 back in 1998 would be valued around $769,900 in today’s housing market (source: http://www.laalmanac.com/economy/ec37.php). That means the homeowner would have gained $507,000 over the 20-year period of 1998 to 2018.

Based on real data that bodes well for future homeowners. House values in the Orange County area actually have risen at that pace.

Incomes Rose at a Slower Pace
The median household income in the Orange County metro area rose by 76.2% during the 20-year period mentioned above. This means that home values in the area have risen almost twice as much as incomes.

Orange County is not distinct in that way. Zillow’s statistics throughout the country as a whole reveal a matching trend, with home-price gains surpassing household and individual income growth. Across the country, the median home value improved by 98.6% throughout the 20 year period from 1998 to 2018. In contrast, the median household income in the U.S. increased by 52.6% during that timeframe.

In Orange County, the spread between income and home-appreciation is more noticeable than in a lot of other U.S. cities. This is partially attributable to the double-digit yearly gains in home values that took place during the first few years following the housing crash.

Cities with the Greatest Prices Increases
Out of all the 35 metropolitan areas within the study, San Jose, CA, had the biggest improvement in home prices. From 1998 to 2018, the median home value in that city rose by a massive 296%. Prices in other California metro areas like Los Angeles-Long Beach-Anaheim increased by 244%.

The one thing that each of these housing markets share — including Orange County — is that home price appreciation has slowed in the number of transactions. This is partly due to the rise in mortgage rates.