Central Arkansas residents, like anyone else, experience major life events that can significantly impact their housing needs. One such event is retirement, which brings about some of the most significant changes in our lives. During this phase, you may find yourself wanting to focus more on the things you enjoy, such as traveling, spending time with loved ones, or pursuing new hobbies. But how does retirement affect your home?
If you're seeking ways to prioritize the important aspects of your life, downsizing could be the solution. An informative article from The Balance highlights why downsizing to a smaller home can be a great option, emphasizing the concept of "less is more." Sometimes, the desire for a simpler lifestyle prompts homeowners to seek a smaller home.
According to the 2022 Home Buyers and Sellers Generational Trends report by the National Association of Realtors (NAR), people aged 55 and above have various reasons for moving during retirement. The report identifies the need for a smaller home, the desire to be closer to loved ones, and retirement itself as the top three motivators for this age group. If you fall into this category, it's likely that your priorities have shifted, which in turn may influence your decision to downsize. As your lifestyle changes, so do your housing requirements.
Additionally, downsizing to a smaller home can offer you more freedom and flexibility. As mentioned by The Balance, moving into a smaller space reduces the time and effort needed for home maintenance, allowing you to allocate more of your valuable time to spending quality moments with loved ones or pursuing new interests. This lifestyle change can lead to decreased stress and increased happiness.
When you decide to sell your current house and downsize, your home equity plays a crucial role. It can serve as a valuable resource to facilitate your downsizing plans. According to the latest Homeowner Equity Insights report from CoreLogic, the average homeowner gained around $55,300 in equity over the past year. Dr. Frank Nothaft, Chief Economist at CoreLogic, emphasizes the significance of price appreciation and equity gains for existing homeowners, stating that home prices rose by 18% in 2021, resulting in substantial home equity wealth. For individuals with low to moderate incomes, home equity has historically been a major source of wealth.
As home prices continue to rise, your equity also increases. This means you may have more equity than you realize, thanks to the record-breaking levels of home price appreciation witnessed in the past year. These equity gains can be used to make a larger down payment on your next home. A higher down payment can lead to a reduced monthly mortgage payment, offering you greater financial freedom. It can also give you a competitive edge in today's housing market, as a larger upfront offer may help your bid stand out among others.
No matter what your homeownership goals may be, partnering with a trusted real estate advisor can greatly assist you in finding the best housing option for your situation. They will guide you through the process of selling your current home and help you navigate the purchase of your next one, ensuring a smooth transition into this new phase of your life.
In conclusion, if you have recently retired or are planning to do so in the near future, it's highly likely that your needs are evolving. This makes it an opportune time to consider downsizing. Let's connect so we can collaborate in finding a home in Central Arkansas that perfectly aligns with your current situation and future aspirations.
