Is Retirement a Good Time to Buy a Smaller Home?

Retirement is one of the biggest life changes many people face. Retirement  can have a major impact on what you need from your home, and if you're planning to do more of the things you enjoy, like traveling, visiting with loved ones, or taking on new hobbies, you may want to focus less on your home and more on what's important in this new stage of life! As your lifestyle changes, what you need and want in your home likely changes, too. Downsizing can be just the ticket.

You Can Find the Right Home for Your Needs

The National Association of Realtors found that 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.  Moving into a smaller home can open your schedule up so you can spend less time maintaining your home and more time with the people you love or exploring newfound hobbies, all of which can lead to less stress and more happiness! 

Your Equity Can Make a Big Impact When You Downsize

Have you been in your home for a while? Chances are you have a good deal of equity, which is a great help should you decide to downsize. 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 bigger 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 today's competitive housing market, since offering more money up front could help your offer stand out.

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. Let's take a few minutes to chat and see if now makes sense for you to start looking at getting into a smaller home!