When the season changes, the direction of the housing market also changes. In a seller’s market, sellers get several offers and competition tends to heat up for possible buyers. With increased immigration, demand for housing increases. Also, stable interest rates can renew buyer confidence. When houses are selling quickly, a lot of homeowners contact Agence immobilière IMM to discuss the possibility of selling their homes and downsizing to a smaller house. Although there is no external situation that can determine the perfect time to downsize, the following are signs it may be time to make the leap.
High Interest Rates
The majority of homeowners do not think about increasing interest rates as good news. For people who want to upgrade or buy their first home, rising interest rates can increase borrowing costs and make buying a house less affordable. However, for those who want to downsize, such a rise can be an advantage.
If you sell your house and purchase a smaller and more affordable one, you may not need financing, making interest rates irrelevant. But you will have more options when finding a new house and less competition from other home buyers.
Alternatively, you can rent a house instead of buying one immediately. In this case, the proceeds of your sale stay in your bank account. When the interest rate is high, you receive more passive income, which can cover most or all of your rent payments every month.
Low Interest Rates
A decrease in interest rates can trigger a busy seller’s market and interest surge from possible buyers. Your listing could get several offers and sell over the asking price.
Then, you will need to enter the real estate market again as a buyer and compete against other buyers for the house you want. Still, having proceeds from the sale of your home gives you an advantage over buyers who still have to secure their financing.
Overall, the perfect time to downsize does not have to do with what’s going on in the real estate market. Instead, it may be time to downsize when it is right for you.
You Have Thought About Your Options
You may be ready to downsize when you have considered all options for your future. Your plans must include your health and how much support you might need over time. Still, you should think about the possibilities when you don’t have a big house to maintain. These possibilities include using the proceeds of the sale to travel the world, renting an apartment without snow to shovel or grass to cut, or selling your existing house and buying a smaller condo or townhouse.