Why Is the Average Length of Homeownership Rising?

The length of homeownership is rising both here in California
and across the United States. So, why is this happening and what
does it mean for the real estate market?





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Length of homeownership has increased not only here in
California, but nationwide. A recent study conducted by the Adam
Data Solutions Group collected information from 11 major
metropolitan cities in California, and it found that the typical
length of homeownership is almost two years longer than the
previous average of five to seven years. Nationally, the
length of homeownership has increased by about a year and a
half. Today, I’d like to take a look at some of our nearby
counties. In Los Angeles and Orange County, the average length of
homeownership in 2012 was 7.11 years. As of March of this year,
the average length of homeownership in those same counties is now
at 9.59 years. So, why has this change taken place? Many people
believe the recent recession has a lot to do with it. As I like
to say, many homeowners may not love their home, but they do love
their mortgage. Other areas saw similar changes. San Francisco
went from 7.72 years of ownership in 2012 to 9.95 years today.
Also, Silicon Valley went from 5.75 years in 2012 to 9.79 years
in 2017. This shows us a fairly consistent trend across many
major cities in California. Let’s also take a look at San
Diego. In 2012, the average length of homeownership in San Diego
was 7.3 years. Now, the average length of homeownership in San
Diego is up to 9.43 years.


We’re seeing a very healthy market, so now is the time to
make your move.

One of the things this trend tells me is that now is the
time to sell. This is something I advise strongly to my sellers,
since today’s inventory is low and demand is strong. Low interest
rates are also playing a key role in buyer appetites on the
market. At the beginning of 2017, we predicted that a lot of
buyer consumption on the market would be coming from millennials.
This has happened to a degree, but not yet to the extent that
many assumed would be the case. All this just goes to show that
you shouldn’t wait around on what you expect might happen from
the market. For example, a lot of my buyers have been asking me
if I think they should wait for prices to drop. However, my
advice to buyers is not to wait. You never know where interest
rates or the economy will be tomorrow. Now is the time to
make your move. We’re seeing a very healthy market with great
interest rates. If you have any other questions or would like
more information, feel free to give me a call or send me an
email. I look forward to hearing from you soon.