While the increased interest rates have certainly affected the number of sales on a year over year comparison causing a decrease in total number of sales to decrease consistently over the last few months, there is a more interesting trend happening here too.
While many homeowners in their mature years often think about downsizing and eliminating some of the laborious tasks that come with owning a larger and or older home, especially in a market like this many are staying put. Why? Based on recent surveys and industry data, the generations that would normally be selling to maximize their profit in a high market like this, have always been taught the age old belief that renting is wasting your money and you should own a home. These long-embedded beliefs are difficult to overcome for many older homeowners who have lived in their home for 20+ years, brought up their children, spent numerous holidays and made hundreds of memories there. Letting go of the family home along with the lack of inventory of the type of home they would want coupled with the legitimate belief that owning is better than renting have so many Gen Silent and Baby Boomers very hesitant to make a move.
Owning instead of renting is a good idea but it is not absolute. So many have found peace of mind in tenancy. Not being responsible to mow the yard, rake the leaves, shovel, make repairs and be tied to your house can save you several hours in a week, a lot of headaches and stress and a ton of money. Oh and did I forget to mention, no real estate taxes either, who doesn’t love to hear those words! So if you’re sitting on a lot of equity, maybe you rethink this whole idea of renting. The banks are paying good interest on CD’s right now and for every $100,000 of equity you can cash out of your house, you could earn approximately $5000 per year in a CD! Did you hear that?? If you have $500,000 or more worth of equity in your current house, you could sell, eliminate all those pesky time-consuming tasks and responsibilities and your real estate taxes AND be earning $25,000/year! Don’t forget, the added bonus of being able to use all your free time to do what you want to do and what makes you happy, like seeing your grandchildren, meeting friends for coffee, traveling, reading and the ever-popular pickleball.
The bottom line is renting just may be the right answer. Many developers have already begun to prepare for this impending need and as the baby Boomers start coming around to the idea, there will be a huge need for upscale single level apartments to accommodate this need.
Check out our new construction ranch style homes being built to this new code in Northbridge at www.mikesway.info and get into a Zero Energy ready home today!
As always, If you’re thinking of buying or selling it’s best to get the advice of a professional realtor with the right team and having experts work on your behalf is absolutely in your best interest. For more market updates, feel free to reach out: email – [email protected] Instagram @lisashawsells or call me 508 826-7661.