I have been a Realtor in Genesee County since 2003 and I have never experienced the trend that I am experiencing now. 6 out of my last 10 clients are selling their homes after only living in them for 2 years.
Typically, the average person owned 3 houses in their lifetime: a starter home, a family home and a retirement home. But this new 2-year trend lets traditional home owners “slip in” an additional move.
Even if you moved around (career change, etc.) the Five Year Rule states that you should stay in a house for at least 5 years to cover your closing costs and to start to pay down the principal.
However, with home values on the rise, some homes start building equity the day they are purchased. As a result, their owners have decided they want to upgrade early and ignore the “Five Year Rule.”
How long can this trend last? Eventually home values will peak and this trend will end. Right now we’re in a Seller’s market. As prices rise and demand softens (the economy can’t keep growing forever!) we will return to a more normal market again.
The good news is that if you purchased a home in the last 2-3 years that you’ve fallen out of love with – and want to upgrade without losing money – you still can. I believe the 4th quarter of 2018 will be the tail end of this trend.
The housing market can change like the wind – so enjoy this breath of fresh air knowing if you bought too big or too small you might not have to live with it.