Buying your first home was likely one of life's biggest milestones. It marked the start of a new chapter and gave you a place to create lasting memories. Maybe it's where you began married life, welcomed a new baby, or adopted your first family pet.
But that first home was only the beginning.
For many homeowners, a starter home is meant to be a stepping stone rather than a forever home. As life evolves, so do your needs.
If your lifestyle has changed since the day you first got the keys, you may have more options than you realize. Making a move could be more achievable than you think.
Starter Home Inventory Is Still Relatively Low
If you've been thinking about upgrading to your next home, here's some encouraging news. Starter homes continue to be among the most in-demand properties on the market, which can work in your favor if you're considering selling your first home.
For years, there hasn't been enough new construction to keep up with demand for entry-level homes. While builders have recently increased their focus on smaller, more affordable properties, data from the Census Bureau shows there's still plenty of ground to make up in restoring inventory (see graph below):
That means your current home is in high demand, putting you in a strong position as a seller. But that's only part of the equation. The next step is finding the right place to move into.
There Are More Move-Up Homes on the Market
Here's where things become even more encouraging. Although the inventory of starter homes remains limited (the green line), Redfin data shows that the overall number of homes for sale has been steadily increasing (the blue line):
As Nadia Evangelou 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.”
While entry-level inventory remains limited, the broader market is offering more homes for sale. That could give you more flexibility as you search for your next home. Whether you're looking for an extra bedroom, a dedicated home office, a larger backyard, or simply more space to match your current lifestyle, today's market may offer more opportunities than you expect.
At the same time, your current home could be exactly what another buyer has been waiting for. With starter homes still in limited supply, sellers in this price range continue to benefit from strong demand. That combination can put move-up buyers in an excellent position, with the potential to maximize the value of their current home. As Zillow notes:
"Starter home value appreciation has outpaced other types of homes nationally, mostly because they're so in demand."
Your Biggest Advantage May Be Your Equity
Here's one more reason to feel confident about making a move. Over the years, your first home has likely been building equity behind the scenes. With every mortgage payment you've made and every increase in your home's value, your ownership stake has continued to grow.
According to Cotality, the average homeowner with a mortgage has built up about $295K in equity. Your situation may look different, but when you sell, that equity could provide a substantial down payment on your next home or help reduce the amount you need to finance at today's mortgage rates.
When you put it all together, moving up may be more attainable than you realize:
Your current home is in high demand.
The home you want may be easier to find.
The equity you've built can help close the gap between selling and buying.
Your first home accomplished exactly what it was meant to do. It gave you a strong foundation and a place to begin your homeownership journey.
Now, it could be the key to helping you take the next step.
Bottom Line
Your first home wasn't meant to be your forever home. It was designed to give you a place to grow while helping you build the financial foundation for the future.
If your current home no longer matches your lifestyle or needs, let's connect. You may be closer to making your next move than you think.
