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26
Is It Time To Purchase a Smaller Property?
Life events can have a major impact on what you need from your home, and retirement is one of the most drastic changes many of us face. This period of your life can mean doing more of the things you enjoy, like traveling, spending quality time with friends, or taking on new adventures. What does that mean for your home?
If you're looking for ways to focus more on the most meaningful things in your life, the solution may be downsizing. A recent article from The Balance talks about why it could be a viable option, saying:
"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."
You Can Find the Right Home for Your Needs
The 2022 Home Buyers and Sellers Generational Trends report by the National Association of Realtors (NAR) provides further information on why people of retirement age choose to move. It report concludes thats the need for a tinier space, the desire to be in closer proximity to family, and retirement itself as three of the top reasons as to why homebuyers over the age of 55 make a move.
If you're in this group, changing priorities may be top of mind for you today, and that could be driving your decision to simplify. After all, as your lifestyle changes, what you need in your home changes as well.
Plus, as The Balance notes, moving into a smaller home can open your schedule up even more. When you downsize, you have the ability to spend less time maintaining your home and more time with the people you love or exploring new hobbies. That's a recipe that can lead to less stress and increased happiness.
Your Equity Can Make a Big Impact When You Downsize
Home equity plays a big role when you sell your existing house and move. It could be a great tool to use to help you downsize. According to the latest Homeowner Equity Insights report from CoreLogic, the average homeowner gained about $55,300 in equity over the past 12 months. According to Frank Nothaft, Chief Economist at CoreLogic, price appreciation and equity gains are important for existing home owners:
"Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth, . . . For low- and moderate-income homeowners, home equity has historically been a major source of wealth."
As home values increase, so does your equity. Due to the record levels of home price appreciation over the past year, you may have more equity than you realize. With your equity gains, you could put down a larger down payment on your next home. Having a larger down payment can lead to less of a monthly mortgage payment, which may lead to greater financial freedom. You can also use it as a valuable tool to stand out in today's competitive housing market, since offering more upfront will make your offer more attractive.
No matter your homeownership goals, a trusted real estate advisor can help you to find the best option for you, personally. We'll help you sell your current home and guide you as you buy your next one and embark on this new phase of your life.
Bottom Line
In the case of recent retirement or imminent retirement, your needs are likely to change. That means now may be the perfect time to pare down the size of your home. Let's talk about your housing needs so we can find a home that matches your lifestyle.
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