I recently read an article on the KCM Blog called, “Is it time to buy a smaller home?”
Here’s what it said:
Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean doing more of the things you enjoy, like traveling, visiting with loved ones, or 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.
Studies show for many people aged 55 and older site 3 reasons they make a move:the need for a smaller home, the desire to be closer to loved ones, and retirement itself
If you’re in this group, changing priorities may be top of mind for you today, 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, moving into a smaller home can open your schedule up even more. When you downsize, you can 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.
One thing that can Make a Big Impact When You Downsize is the equity in your home.
It could be a great tool to use to help you downsize. According to the latest studies, the average homeowner gained about $55,000 in equity over the past 12 months. Dr. Frank Nothaft, Chief Economist at CoreLogic, explains how important price appreciation and equity gains ar e for existing homeowners:
“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 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 to 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.
Bottom Line
If you’ve recently retired or plan to soon, your needs are likely changing. That means now may be the perfect time to downsize. Connect with me to get a better sense of how to find a home that matches your situation.
And as always, MAKE IT A GREAT DAY!
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