Making the decision to downsize your home can be a big one, but it might be the right one for you. In this video, we’ll talk about some of the benefits of downsizing and how it makes you a winner in today’s market.
Life events can have a major impact on what you need from your home, and retirement is one of the biggest challenges many of us will face. This period of life can mean doing more of the things you enjoy like traveling, visiting with loved ones, and taking on new hobbies. But what does that mean for your home? If you’re looking for ways to focus more on the important things in your life the answer could be downsizing.
A recent article from The Balance talks about why it could be a great option. “There are many reasons to buy a smaller home or to downsize from your present home but sometimes the idea that ‘less is more’ is what propels homeowners to buy a smaller home.” The 2022 Home Buyers and Sellers Generational Trends from the National Association of Realtors provides more information on why people of retirement age choose to move. It shows the need for a smaller home, the desire to be closer to loved ones, and retirement itself as three of the top reasons home buyers over the age of 55 make a move.
If you’re in this group, changing priorities may be top of mind for you and that could be driving your decision to downsize. After all as your lifestyle changes what you need in your home likely changes too. Plus as The Balance notes, moving into a smaller home can open your schedule up even more. When you downsize you spend less time maintaining your home and more time with the people you love or exploring newfound hobbies. That’s a recipe that can lead to less stress and increased happiness.
Home equity plays a big role when you sell your existing house and move. It could be a great tool to help you use to downsize. According to the latest Homeowner Equity Insights report from CoreLogic, the average homeowner gained about $55,300 in equity over the last 12 months. As home prices rise your equity does too, so you may have more equity than you realize because of the record levels of home price appreciation over the past year.
Those equity gains could allow you to make a larger down payment on your next home and putting more money down can lead to a smaller monthly mortgage payment which can give you greater financial freedom. It can also be a significant help in navigating today’s competitive housing market since offering more money up front could help your offer stand out.
Whatever your homeownership goals are a trusted real estate advisor can help you find the best option for your situation. They’ll help you sell your current home and guide you as you buy your next one and enter this new phase of life.
So what’s the bottom line? I you’ve recently retired or planned too soon your needs are likely changing. That means now may be a perfect time to downsize. So let’s connect so we can work together and find a home that matches your situation!
Want more information? Check out my FREE Downsizing Guide: Complete Guide to Downsizing