If retirement is approaching, now is the perfect time to start planning for your next chapter. Ensuring your financial stability is key to enjoying the lifestyle you envision.
What many homeowners don’t realize is that they may be sitting on a hidden financial asset—their home. According to data from the Federal Housing Finance Agency (FHFA), home values have increased by nearly 60% over the last five years alone (see graph below):
This appreciation has significantly boosted homeowners’ net worth. Freddie Mac reports that over the same five-year period:
. . . Boomer overall wealth increased by $19 trillion, or $486,000 per household, half of which is due to house price appreciation.”
If you’ve owned your Triangle area home for even longer, chances are you have even more equity built up. If you’re looking to tap into that wealth, downsizing could be a smart move.
Why Downsizing Might Be the Right Move
Selling your Raleigh home and downsizing—whether to a smaller property or a more affordable area—can allow you to access your home equity and use it to strengthen your retirement plan. Whether your goal is to travel, spend more time with family, or feel more financially secure, tapping into your home’s equity can provide valuable options. Chase explains:
Retirement is an exciting time. Selling your home to take advantage of the equity or to downsize to a more affordable home can open up additional options for your future.”
Here are a few ways a smaller home can help fuel your retirement:
1. Cut Your Cost of Living
According to AARP, the top reason adults 50 and older move is to reduce their cost of living. Downsizing to a smaller home or moving to a more budget-friendly location can lower expenses like utilities, property taxes, and maintenance costs—helping stretch your retirement savings.
2. Simplify Your Life
Less space means less upkeep and fewer responsibilities, giving you more time and energy to focus on what matters most. A smaller home can help free you from the stress of constant home maintenance, so you can truly enjoy your retirement.
3. Boost Your Financial Flexibility
Selling your Triangle area home allows you to turn equity into cash, giving you more control over your finances. Whether you want to invest, pay off debt, or build a financial cushion, tapping into your Raleigh home’s equity can open up new opportunities.
The First Step Toward Your Next Chapter
If downsizing sounds like a possibility, your next step is to connect with a trusted real estate agent. An agent will help you determine how much equity you have, how to use it, and guide you through the entire selling and buying process to make your transition as smooth as possible.
Bottom Line
If retirement is on your 2025 horizon, now is a great time to consider downsizing and unlocking the equity you’ve built in your home. Contact Linda Craft Team Realtors today to start planning your move so you can step into this exciting new chapter with confidence!
