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. A recent article from The Balance talks
about why it could be a great 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
You Can Find the Right Home for Your Needs
The 2022 Home Buyers and Sellers
Generational Trends from the National
Association of Realtors (NAR) provide 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 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 downsize.
After all, as your lifestyle changes, what you need in your home likely
Plus, as The Balancenotes, 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.
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. Dr. Frank Nothaft, Chief Economist at CoreLogic, explains how important
price appreciation and equity gains are 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
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 upfront could help your offer stand out.
Whatever your home ownership 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.
If you've recently
retired or plan to soon, your needs are likely changing. That means now may be
the perfect time to downsize. Let's connect so we can work together to find a
home that matches your situation. Contact me at (904) 274-1692 to get started.