Is the Pandemic Making You Consider A Downsize? You’re Not Alone.

Since the pandemic hit and we’ve been staying home more than before, we’ve had many opportunities to reflect on what we consider most important in our lives. 

Our home is the biggest thing many of us are reevaluating. George Ratiu, Senior Economist at realtor.com, says:

“The very nature of the pandemic, through the health implications, social distancing, and need to isolate, has really brought a central focus on the importance of home for most Americans…In a sense, it has elevated real estate markets as a centerpiece of our lives.”

“When asked more specifically how the pandemic may have impacted their preference for home size…21% or about 1 out of every 5 buyers, do want a larger home now as a direct result of the health crisis, while another segment – 12% – would prefer a smaller one instead.”

You might think that more time at home leads to wanting a larger home, but surprisingly, many homeowners are actually looking for less space. If you have a larger home and you want to downsize, today’s market is overflowing with opportunities to do so. Danielle Hale, Chief Economist at realtor.com, explains:

“In a real estate market that is tipped in the favor of sellers, boomers and older homeowners are really the ones holding the cards…Those who are selling homes can use the profits to help them buy new ones.”

Being a homeowner today, you most likely have some equity that can be put towards buying your next dream home. With the equity growth homes have seen over the last year, you may have more equity than you think, which can significantly help your next move. According to National Association of Realtors (NAR):

“Home sellers cited that they sold their homes for a median of $66,000 more than they purchased it. Sellers 22 to 30 years gained the least at $33,400 in equity compared to sellers 66 to 74 years gained $100,000 in equity as they likely had lived in their homes for a longer period of time.”