How to Use the Correction Cycle to Meet Your Upsizing or Downsizing Goals
If you’re looking to downsize or upsize, then pay attention to this message on how to leverage market conditions to your advantage.
Right now, the real estate landscape is ideal for those looking to downsize. Meanwhile, the market we expect to see in the near future will be great for upsizing.
Depending on your goals, timing your move to correlate with current conditions may allow you to leverage our market to your advantage. Allow me to explain:
Leading experts believe there will be a 6% to 8% correction each year for the next three years, meaning the total correction at the end of that period will likely be between 18% and 24%. If you’re in a $1.2 million home, a market correction of even just 10% over three years would equate to a $120,000 equity loss over that time. In other words, downsizing soon is something you may want to consider.
Why? Well if you were to sell your $1.2 million home and move into an $800,000 home instead, the market correction wouldn’t impact you as severely. After downsizing, you’d lose $80,000 in equity instead of $120,000.
Of course, different markets and different price points don’t correct at the same rate, but the point of this example remains: It’s currently a great time to downsize.
But what about if you’d like to upsize? Well, there’s soon to be a window of opportunity available to you, too.
For this scenario, let’s say you’re in a home worth $1 million and are ready to move into one worth $1.5 million. The same idea applies here: After the correction, your current home will have lost $100,000 worth of value, while the home you’re buying will have lost $150,000 in value. This means you would be $50,000 closer to that home you wanted to upsize to.
In short, our team would be happy to develop a plan for helping you take advantage of the market. If you have any other questions, would like more information, or would like to talk more about your upsizing or downsizing goals, feel free to give me a call or send me an email. I look forward to hearing from you soon.