We're noticing a significant shift in how people think about their homes, and it's worth sharing what we're seeing on the ground. For the first time since the pandemic, we're having meaningful conversations about downsizing- or, as we prefer to call it, right-sizing. It feels like we are having 2019 conversations again.
This represents quite a change from recent years. While 2019 saw many clients (especially in older generations) interested in moving to smaller spaces, COVID-19 dramatically reversed this trend. They stayed put, worried about the future.
All of the sudden we are witnessing a return to more traditional living patterns as pandemic fears subside and people reassess what truly matters to them:
Lifestyle > Large House
What's particularly interesting is how people are approaching this decision now vs 2019. We're working with clients with beautiful, larger homes who realize they will only get half the space for the same price on a smaller property (this has been a sticking point for many in our area due to the value nature of our area) and are now ready to make the move to smaller homes or condos in spite of the lateral move financially. We are also working with younger clients who have outgrown their pandemic home and are looking to size up.
Why?
A couple of reasons. One…Everyone is six years older. The reality of time is ticking and families are growing.
Our older clients are placing a premium on their time over square footage. In other words, the freedom from maintenance and upkeep is becoming more valuable than extra space. Our younger clients are literally exploding at the seams in their starter homes and need more space. People are on the go again.
This timing also feels significant. Those who first considered downsizing six years ago are now really ready to make the move. The majority of my appointments right now are with all kinds of people downsizing. Interesting right?
Market conditions are aligning to support these moves. Interest rates are beginning to ease into the low 6s, which we expect will bring more right-sizers out of hiding. Gen X and Boomers are selling their larger homes, creating perfect opportunities for Millennials (and soon, Gen Z) with growing families. Even those locked into the coveted 3% mortgages are starting to emerge onto the market, driven by the need for a space that better suits their current life.
One important note: We're finding that people often need to recalibrate their cost expectations especially if they have not thought about real estate in a very long time. However, as mentioned, the initial pricing shock we saw a few years ago has largely subsided, and the slightly slower market pace means buyers have more time to make thoughtful decisions.
For those considering a move, we currently have a private diverse portfolio of listings that could match various right-sizing goals - from an incredible Packer house to some remarkable historical properties, and even a river property. You never know what or who crosses our path. If you are looking to buy or you want us to keep you in mind for a buyer you know where to find us!
Whether you're considering scaling up or down, the current market presents some unique opportunities. The slightly slower pace means you have time to find more of what you're looking for, and we're here to help you navigate every step of that journey. We are in it to win it with you!
