Why Moving to a Smaller Home After Retirement Makes Life Easier

 

Retirement is a time for relaxation, adventure, and enjoying the things you love. As you imagine this exciting new chapter in your life, it’s important to think about whether your current home still fits your needs.

If it’s too big, too costly, or just not convenient anymore, downsizing might help you make the most of your retirement years. To find out if a smaller, more manageable home might be the perfect fit for your new lifestyle, ask yourself these questions:

• Do the original reasons I bought my current house still stand, or have my needs changed since then?
• Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
• What are my housing expenses right now, and how much do I want to try to save by downsizing?

If you answered yes to any of these, consider the benefits that come with downsizing.

The Benefits of Moving into a Smaller Home

There are many reasons why you should downsize. Here are just a few from Bankrate:

Your Equity Can Help Make Downsizing Possible

If those perks sound like something you’d want, you may already have what you need to make it happen. A recent article from Seniors Guide shares:

“And at a time when homeowners age 62 and older have more than $12 trillion in home equity, downsizing makes sense . . .”

If you’ve been in your house for a while, odds are you’re one of those homeowners who’s built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Downsizing can mean taking that equity when the home is sold and using it to pay cash or make a large down payment on a lower-priced home, reducing your monthly living expenses.”

When you’re ready to use all that equity to fuel your next move, we will be your guide through every step of the process. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate.

Bottom Line

Starting your retirement journey? Think about downsizing – it could really help. When you're ready, talk to contact us about your housing goals this year

PATTI LEE PROPERTIES
Results that Move You!

Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008

 

txPLP.com

Even if you didn’t own a home at the time, you probably remember the housing crisis in 2008. That crash impacted the lives of countless people, and many now live with the worry that something like that could happen again. But rest easy, because things are different than they were back then. As Business Insider says:

“Though many Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.”

Here’s why experts are so confident. For the market (and home prices) to crash, there would have to be too many houses for sale, but the data doesn’t show that’s happening. Right now, there’s an undersupply, not an oversupply like the last time – and that’s true even with the inventory growth we’ve seen this year. You see, the housing supply comes from three main sources:

• Homeowners deciding to sell their houses (existing homes)
• New home construction (newly built homes)
• Distressed properties (foreclosures or short sales)

And if we look at those three main sources of inventory, you’ll see it’s clear this isn’t like 2008.

Homeowners Deciding To Sell Their Houses

Although the supply of existing (previously owned) homes is up compared to this time last year, it’s still low overall. And while this varies by local market, nationally, the current months’ supply is well below the norm, and even further below what we saw during the crash. The graph below shows this more clearly.

If you look at the latest data (shown in green), compared to 2008 (shown in red), we only have about a third of that available inventory today. 

So, what does this mean? There just aren’t enough homes available to make values drop. To have a repeat of 2008, there’d need to be a lot more people selling their houses with very few buyers, and that’s not the case right now.

New Home Construction

People are also talking a lot about what’s going on with newly built houses these days, and that might make you wonder if homebuilders are overdoing it. Even though new homes make up a larger percentage of the total inventory than the norm, there’s no need for alarm. Here’s why.

The graph below uses data from the Census to show the number of new houses built over the last 52 years. The orange on the graph shows the overbuilding that happened in the lead-up to the crash. And, if you look at the red in the graph, you’ll see that builders have been underbuilding pretty consistently since then: 

There’s just too much of a gap to make up. Builders aren’t overbuilding today, they’re catching up. A recent article from Bankrate says:

“What’s more, builders remember the Great Recession all too well, and they’ve been cautious about their pace of construction. The result is an ongoing shortage of homes for sale.”

Distressed Properties (Foreclosures and Short Sales)

The last place inventory can come from is distressed properties, including short sales and foreclosures. During the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to get a home loan they couldn’t truly afford.

Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses data from ATTOM to show how things have changed since the housing crash: 

This graph makes it clear that as lending standards got tighter and buyers became more qualified, the number of foreclosures started to go down. And in 2020 and 2021, the combination of a moratorium on foreclosures (shown in black) and the forbearance program helped prevent a repeat of the wave of foreclosures we saw when the market crashed.

While you may see headlines that foreclosure volume is ticking up – remember, that’s only compared to recent years when very few foreclosures happened. We’re still below the normal level we’d see in a typical year.

What This Means for You

Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash. As Forbes explains:

“As already-high home prices continue trending upward, you may be concerned that we’re in a bubble ready to pop. However, the likelihood of a housing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024.”

Mark Fleming, Chief Economist at First American, points to the laws of supply and demand as a reason why we aren’t headed for a crash:

“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”

And Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“We will not have a repeat of the 2008–2012 housing market crash. There are no risky subprime mortgages that could implode, nor the combination of a massive oversupply and overproduction of homes.”

Bottom Line

The market doesn’t have enough available homes for a repeat of the 2008 housing crisis – and there’s nothing that suggests that will change anytime soon. That’s why housing experts and inventory data tell us there isn’t a crash on the horizon.

PATTI LEE PROPERTIES
Results that Move You!

6 Sparkling Regencycore Decorating Ideas to Give Your Home the ‘Bridgerton’ Treatment

 

During the initial release window of season one in December 2020 and early 2021, Netflix's sumptuous period drama Bridgerton was watched by a record-breaking 82 million households; seasons two and three (released in 2022 and 2024, respectively) have made the series one of Netflix’s most-watched shows of all time, amassing billions of viewing minutes.

The sultry high-society scandals aren’t the only reason viewers are riveted. With its lavish costumes and extravagant interiors, the series is a visual delight. Set in London in the early 1800s, the story takes place during the Regency period of British history, which spanned from 1811 to 1820, and was defined by wealth and sophistication.

“The Regency period can be regarded as one of the most colorful and exciting periods of interior design,” says Karina Lameraner, formerly of Modsy.

Decorative arts flourished during this era, and the homes of the aristocracy, like those of the wealthy families featured in Bridgerton, featured opulent furnishings, detailed textiles, and striking color schemes, Lameraner says. Many grand Regency-era homes also featured impressive staircases, highly decorative wall treatments, and intricate metalwork by gifted craftsmen. 

The popularity of the series has sparked interest in a more decadent decorating style—aka Regencycore—as Bridgerton fans burn for a bit of regal extravagance in their own homes.

“Regency style is all about celebrating the opulence of elegant and beautiful detail,” Lameraner says. To recreate the lavish look of the series, embrace classic elements and historical glamour with these Regencycore decorating ideas.

Georgian-Era Style Is on the Rise—Here’s How to Try It

01of 06

Incorporate Pastel Hues

JOHN BESSLER 

Much of the Bridgerton family’s home and wardrobe is washed in soft, pastel colors, with Wedgwood Blue, a pale blue found on 18th-century Jasperware pottery, being their signature hue. Apply similar shades across your walls, furniture, and accessories to mimic the estate’s luxurious, airy look.

“Seek out a range of shades within the pastel family to help create depth and contrast in your space,” Lameraner suggests. Try pairing powder blue with colors like lavender, blush pink, or mint green for a subtle effect.

02of 06

Add Small Decorative Accents

DAVID TSAY

Focus on small decorative accessories to seamlessly merge Regencycore with modern-day furnishings, Lameraner suggests.

“Pillows, side tables, stools, and mirrors are all great additions,” she says. Look for accessories with carved details, scrolled edges, metallic gold finishes, and other classic motifs to nail the Bridgerton-inspired look.

Mirrored Walls and Ceilings Are Making an Elegant Comeback

03of 06

Choose Luxurious Materials

ADAM ALBRIGHT

Rich fabrics provide a simple way to give your home a sense of luxury. Choose materials such as velvet, silk, or linen for upholstered furniture, window treatments, and other fabric elements. If all-new furniture isn’t within your budget, consider layering in these materials with smaller accents, like throw pillows or an upholstered stool. These textiles look and feel expensive, but when applied in small doses, they don’t have to cost a Featherington-level fortune.

04of 06

Bring in Ornate Patterns

EMILY FOLLOWILL

Damask patterns and floral motifs are prominent throughout the elegant interiors of Bridgerton. These elaborate patterns make a bold statement when applied in large doses across walls, rugs, and furniture. Give your bedroom a sumptuous look with a damask duvet cover, or cover dining room walls with delicate floral wallpaper.

05of 06

Hang Dramatic Drapes

JULIE SOEFER

Long, flowing drapes immediately add a more formal feel to rooms. Hang curtains that brush the floor and stretch nearly to the ceiling to make any space feel grander. Choose thick fabrics and pull them back with tasseled tiebacks to enhance the effect.

The Regencycore Bathrooms In 'Bridgerton' Are the Diamonds of the Season

06of 06

Create Symmetry With Furniture

WERNER STRAUBE

Designed primarily for entertaining visitors, many Regency-era living spaces adhered to the classic design principle of symmetry. By mirroring seating areas on either side of the room, these formal furniture arrangements helped encourage conversation. To recreate this concept in your own living room, try positioning two sofas or two sets of chairs to face each other with a coffee table or ottoman in the middle. Or carve out a separate sitting area just off of your main living room to serve as an intimate spot for conversation.

PATTI LEE PROPERTIES
Results that Move You!