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 youre looking for ways to focus more on the important things in your life, the answer could be downsizing. Arecent articlefromThe Balancetalks about why it could be a great option, saying:
There are many reasons to buy a smaller homeor to downsize from your present homebut 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
The2022 Home Buyers and Sellers Generational Trendsfrom theNational Association of Realtors(NAR) 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 homebuyers over the age of 55 make a move.
If youre in this group, changing priorities may be top of mind for you today, and that could be driving yourdecisionto downsize. After all, as your lifestyle changes, what you need in your home likely changes, too.
Plus, asThe Balancenotes, moving into a smaller home can open your schedule up even more. When you downsize, you can spend less timemaintainingyour home and more time with the people you love or exploring newfound hobbies. Thats a recipe that can lead to less stress andincreased happiness.
Your Equity Can Make a Big Impact When You Downsize
Home equityplays 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 latestHomeowner Equity Insightsreport fromCoreLogic, the average homeowner gained about$55,300 in equity over the past 12 months. Dr. Frank Nothaft, Chief Economist atCoreLogic,explainshow 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 wealth.
As home prices rise, yourequitydoes, too. So, you may have more equity than you realize because of the record levels ofhome price appreciationover the past year. Those equity gains could allow you to make alarger down paymenton 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 todayscompetitivehousing market, since offering more money up front could help your offer stand out.
Whatever your homeownership goals are, a trusted Seven Gablesreal estate advisorcan help you to find the best option for your situation. Theyll help yousellyour current home and guide you as you buy your next one and enter this new phase of life.
Bottom Line
If youve recently retired or plan to fairly soon, your needs are likely changing. That means now may be the perfect time to downsize. Connect with a Seven Gables Advisor so we can work together to find a home that matches your situation.
