Another season, another change in the direction of the real estate market. For now, all signs seem to point to a revived seller’s market. Many listings are back to multiple offer scenarios, and competition is heating up for potential buyers. It’s too early to tell if the recent bustle of activity has to do with seasonality or if we are on the cusp of a permanent turnaround. However, increased immigration means more demand for housing. Interest rates are currently holding steady, which could renew buyer confidence. Houses are once again selling quickly! What does this mean for existing homeowners? 

For many people, the timing is perfect for downsizing to a smaller place. While no outside circumstance can determine when you should make the leap, the signs below may indicate that a change is on the horizon.

Interest Rates Are High

Most people don’t consider rising interest rates to be good news. For first-time buyers or anyone looking to upgrade, rising rates can drive up borrowing costs and make purchasing a new home less affordable. But for downsizers, rising interest rates can actually be an advantage. How?

When selling your home and buying something smaller and less expensive, you likely don’t even need financing, which makes interest rates irrelevant to you. However, you’ll be in an excellent position when searching for your new home, with more options to choose from and less competition from other buyers. 

Alternatively, you may choose to rent instead of buying something right away. In that case, the money from your sale sits in your bank account. The higher the interest rate, the more passive income you receive. This could cover all or most of your monthly rent payments.

Interest Rates Are Low

How is it possible that low interest rates can also be an advantage when downsizing your home? When rates drop, it often triggers a busy seller’s market and a surge in interest from potential buyers. There’s a good chance your listing could attract multiple offers and even sell over your asking price. 

Of course, you’ll now have to reenter the market as a buyer competing against others for the home you want. Still, the funds from selling your existing home put you at a distinct advantage over those who first need to secure their financing. Alternatively, you could rent until the market softens and prices begin to fall. 

Even though rates are lower, you’ll have more money in the bank in the first place. 

The bottom line is that the time to downsize is right when it’s right for you, not because of what the real estate market is doing.

Selling your home in today’s market opens up so many opportunities for you! Here are just a few ideas:

• Should You Sell Your House or Rent It?
• The Hidden Gems Of Burlington You Need To Know About
• Hamilton Vs. Toronto: Which Ontario City Should You Choose?

The Time Feels Right

It is always encouraging whenever conditions start to swing in your favour as a seller. You no longer have to worry about listing your house for sale only to see little to no buyer interest. If you base your decision 100% on the market, now is the perfect time to sell your house. 

Favourable market conditions help, but they aren’t everything. Downsizing is a big change, and you will know in your heart when the time is right for you. 

Do you ever catch yourself dreaming of having more spare time with less maintenance to worry about? That may be the sign you’re looking for. Plus,  the extra money from selling your home in favour of a smaller one can be very appealing! If all of these benefits feel like they outweigh your enjoyment of your current house, the time to downsize may have arrived.

You’ve Considered Your Options

Another sign you may be ready for a change is that you find yourself considering your options for the future. Consciously or unconsciously, you may be drawn to “For Sale” signs when you’re out and about. If so, you’re already well on your way to the first step in the downsizing process.

Your plans should factor in your health and the amount of support you may need as time goes on. Still, it’s nice to imagine the possibilities that open up to you as soon as you no longer have a large house to take care of. 

• You could use the funds from the sale to become a snowbird and travel the world. Staying with family or renting an in-law suite may be excellent options for the short periods of time you spend at home. 
• You can rent an apartment with no grass to cut or snow to shovel. And if your unit needs repairs or maintenance, your landlord makes the arrangements.
• You could sell your existing home and purchase a smaller, less expensive townhouse or condo. You still have the benefits of homeownership but fewer headaches to worry about.

You Know What You’re Up Against

The thought of downsizing and living a more carefree lifestyle may feel exciting. First, there are logical and emotional aspects to making such a significant change in your life. The longer you’ve lived in your current home, the harder it may be to hand over the keys to a new owner. Over the years, you have likely accumulated many belongings that you will no longer want or need in your new house. You will have to make a decision on every item in the home; to keep, discard or give it away to someone else. 

Once you have thoroughly cleaned and decluttered your home, there may be other updates to consider that could help you enjoy a more successful sale. Preparing your house can be the toughest challenge in the downsizing process, but the rewards are well worth it once you’ve settled into your new lifestyle. The trick is to take it step by step so you never feel overwhelmed or tempted to procrastinate on your goals. 

Help Is Available

Your support network can remove most or all of the stress from selling your house and downsizing. Family members can help you sort through your belongings and sell or donate anything you don’t need. Friends who are handy with a set of tools can help you spruce up your home and make it irresistible to potential buyers who walk through your door!

The most important thing to remember when you decide to sell your home is that you are never alone. Trying to do everything yourself is a recipe for frustration and overwhelm. Engage your network, and the process doesn’t just get easier; it becomes more fun.

Looking to get the best possible results even in a busy market? Here are some resources that will help you:

• The Power of Staging When Selling Your Home
• Minor Upgrades, Maximum Results
• What’s Your House Really Worth?

What to Do Next

Have you decided that the time to downsize is now? The first step is to congratulate yourself on making such a life-altering decision! The next step is to find a local Realtor® who can help you maximize your results when selling your home. The more you earn from your sale, the easier it will be to find and secure your new home where you can start fresh and begin carving out new memories!

Whether you’re ready to get started or just have questions about the current market, our experts are ready and waiting to help you achieve your desired outcome. You can contact us today right here or connect with us immediately by calling 905-332-9223.