Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.
Today, 93% of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of reasons you may still need or want to move. RealTrends explains:
“Sellers who don’t have to move won’t be moving. The most common sellers will be: Homeowners downsizing . . . people moving to get more space, [households] looking for better schools…etc.”
So, if you’re on the fence about selling your house, consider the other reasons homeowners are choosing to make a move. A recent report from the National Association of Realtors (NAR) breaks down why homeowners have decided to sell over the past year:
As the visual shows, the most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure.
If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell.
What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer advice and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision.
When deciding whether or not to move, you have a lot to consider. There are plenty of non-financial reasons to factor in. Let’s connect today to weigh the benefits of selling your house.
While some people see retirement as an opportunity to finally buy their dream home, most retirees are in the market for something smaller. If you’re planning for retirement while self-employed, it’s important to understand what your options are. Whether it’s to save money or cut back on maintenance, a smaller house is a smart move for older adults looking to simplify. You can accomplish both by deciding which home warranty provider is best for you in your new house. Getting a warranty on your new home can help you save on maintenance costs.
If you’re hopping on the downsizing bandwagon, you probably have a lot of questions about how much space is enough, what you can afford to spend, and which amenities you should look for in a downsized home. But more than anything, you’re wondering where to start!
Use these guides, apps, and other resources to kickstart your downsize.
Moving a senior loved one across the country into a new home or transitioning him or her to a senior living community is tough. Learn ways to ensure the transition goes smoothly while tending to their health, finances, and logistics.
Everyone has different retirement goals. For some, a house with ample space to entertain is the pinnacle of success, even if it means spending more time and money to maintain. If you’re looking to streamline your life in retirement, however, skip the extra square footage and downsize your home instead! While the move itself is a lot of work, you’ll be glad you made the effort when you’re enjoying your newfound money and free time during the golden years!
If you need help buying or selling your home in Southeast Virginia, contact Chris Garguilo with eXp Realty today!
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 smaller home.”
You Can Find the Right Home for Your Needs
The 2022 Home Buyers and Sellers Generational Trends from the National 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 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, 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 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.
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.
Dreaming of downsizing in retirement? If so, you are not alone in your aspirations. Countless older adults make changes to simplify their homes and their lives in preparation for a relaxing and low-stress retirement. Deciding to downsize is only half of the battle since you also need to know where to start when making your own downsizing plans. This list of practical and helpful resources from Real Estate with Mr. G can provide some clarity.
Downsizing Responsibility Without Limiting Possibilities
If what you’re really craving is less responsibility when it comes to caring for your home, you should know that you do have options. Including these creative solutions and tips:
First of all, try to focus on right-sizing rather than simply finding a smaller home.
You can use this dream home finder from our website to get started.
Your golden years should be all about you and doing what you love. If you’re not in love with your current home or lifestyle, downsizing or right-sizing could be the right call. Be sure to bookmark this guide so you will have the right resources available to smooth the process. And if you plan on looking for your dream home in the Hampton Area, Christopher Garguilo has all of the resources and information you need. Reach out to get started: 757-876-7443.
For more information and resources on retirement, please click on the links below: