If you’re a homeowner who’s retiring soon, you might be wondering: should sell my house? With prices (and now interest rates) rising, and inventories continuing to plague buyers, it’s understandable to feel unsure. But here are a few reasons why it’s something you may want to consider!
It’s a Strong Sellers Market
Sellers in most suburban areas are seeing a huge spike in demand, mostly from city dwellers, to purchase homes with more square footage, amenities and yards. However, low inventories are forcing prices to skyrocket. According to Virginia-based Realtor Shannon Wright, “Sellers are getting premium prices for their homes, paying little to no closing costs for the buyers, receiving escalation clauses above listing prices, and receiving guaranteed pricing above the appraised values.”
Mortgage Rates Are Rising
Strong sellers market aside, there are also the financial implications of coming off a year with record-low mortgage rates that we saw in 2020. Though slowly thus far, mortgage rates are on the rise this year and beginning to eat into buyer affordability. If you’re retiring soon and are considering moving, this has two-fold implications: 1.) Buyers might get priced out of the market if mortgage rates get too high, and 2.) You don’t want to pay more either!
The Prevalence of Remote Working
Remote working is affording buyers the opportunity to pick their home destinations without being strongly tied to their office. They’re also looking for amenities like bigger yards, waterfront properties, pools, playground areas, more land, etc. But even though space is what they’re after, some still don’t necessarily want to sacrifice urban amenities to get it. They’re looking for communities where they can walk to restaurants, shops, cafes, and more. What this means is that even though buyers are still looking in the more traditional areas, there are also more buyers looking in places that previously would have been “too off the beaten path.” So, regardless of where your home is, you just might have a top-dollar deal in your future!
Should You Consider Renting?
It’s common for those close to retiring to sell their homes early and choose a rental with far less upkeep. And while there’s evidence that the rental markets are starting to stabilize, prices are still riding the wave of increases brought about by demands for more square footage. But the flipside is that rentals come with less to worry about.
“The retirees I’ve worked with want to downsize or move to condos with all the amenities so they have less to take care of, says Wright. “ They can enjoy their retirements better then!”