Deciding to make a move often comes at a major life milestone moment. This could be your family expanding, a new work opportunity, the kids moving off to college, or retirement. The decision to move can also come from a realization that your current space doesn’t align with your lifestyle goals. Maybe you have come to the conclusion that you’d like to simplify your life and have the ability to spend your time and money on things outside of maintaining your home.

If you’re looking for ways to spend more time focusing on what is important in your life and are looking for ways to fund this new venture, downsizing might be the right move for you. Today we’re reviewing all of the reasons why less may be more when it comes to your home size. 

 

A Home That Fits Your Current Needs

When it comes to home sales, baby boomers make up the largest share of sellers at 42% according to the 2022 Home Buyers and Sellers Generational Trends report from the National Association of Realtors (NAR). Additionally, buyers 56 years and younger were more likely to purchase bigger and more expensive homes, while buyers 57 and older were more likely to downsize in both size and price. According to the report, the driving forces for those over the age of 55 to purchase a home include the desire to be closer to friends and family, the desire for a smaller home, and retirement.

It’s important to keep in mind, however, that downsizing is not restricted to those who are empty-nesters or those who have retired or are soon to be retired. Downsizing can appeal to any looking to simplify their life, free up their time, and save money.

 

If you're in either of these scenarios, you may find that your priorities are shifting and you want to focus more on doing what makes you happy. This could mean a move that puts you closer to loved ones or one that provides you with easier access to the hobbies that you enjoy. Additionally, downsizing could allow you to spend less time and money on maintaining your home, and free up more funds to spend on those higher priority items. 

 

Downsizing can also leave you with more hours in your day! With increased cash flow, fewer utility costs, and less house to maintain, downsizing can also free up your schedule and allow you to put more time and energy into the important aspects of your life outside of the home. Whether that’s being able to travel with family or spending more time enjoying moments spent with loved ones, downsizing may provide you with the financial freedom to spend your days doing exactly what you enjoy doing. 

 

The Impact of Equity

One of the major benefits of downsizing in today’s market is capitalizing on the built-up equity you’ve acquired over the years. According to the latest Homeowner Equity Insights report from CoreLogic, the average homeowner gained about $55k in equity over the past 12 months. This means that if you’re looking to downsize, that additional wealth will allow you to place a larger downpayment on your new home. This will result in smaller monthly mortgage payments, which will allow you to have more money to spend on the things that you are passionate about. Additionally, having a large downpayment can help you stand out in today’s competitive market. 

Taking advantage of the equity you’ve built up today can help you attain the home of your dreams tomorrow, and further allow you to focus on your priorities in life.

Bottom Line

If you are experiencing a major milestone in life or are looking for ways to cut back and simplify, you may be thinking that now is the time to downsize and spend your time and money on priorities outside of the home. With the equity that you have built over the years, downsizing today will allow you to align your home with your need. Make your move today to downsize your home to upgrade your life.