As retirement approaches, it’s natural to think about how to set yourself up for a comfortable and fulfilling next chapter. You’ve worked hard to get here, and you deserve to live the life you’ve envisioned.
One surprising asset that could help make that dream a reality? Your home. Over the past five years, home values have soared nearly 60%, according to the Federal Housing Finance Agency (FHFA). That means your home could be a powerful financial tool for your future (see graph below):
The appreciation in your home’s value has likely given your net worth a significant boost. Freddie Mac shares this incredible insight:
“ . . . Boomer overall wealth increased by $19 trillion, or $486,000 per household, half of which is due to house price appreciation.”
If you’ve been in your home longer than five years, you likely have even more equity. Ready to access that wealth? Selling your house to downsize or invest in your next chapter could be the perfect way to maximize the benefits of your hard-earned equity.
Why Downsizing Might Be the Right Move
Selling now so you can downsize into a smaller home, or maybe one in a more affordable area, could free up your home equity so you can use a portion of it to help you feel confident retiring. Whether you want to travel, spend more time with family, or just feel financially secure, accessing the equity in your home can make a huge difference. As Chase says:
“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.”
Curious how a smaller home can transform your retirement? Here are just a few of the benefits:
1. Cut Costs, Live Freely
Lowering your cost of living through downsizing or relocating can ease financial stress. AARP research shows this is a top motivator for adults 50+ seeking to stretch their retirement savings.
2. Streamline Your Life
A cozier home means fewer chores and less maintenance, freeing you to pursue your passions, travel, or spend time with loved ones.
3. Empower Your Future
Selling your home unlocks your equity, giving you financial freedom. Whether you want to invest, eliminate debt, or save for new adventures, downsizing could be the key to your next chapter.
Take the First Step Toward Your New Journey
Downsizing can feel like a big decision, but you don’t have to do it alone. A real estate agent can be your trusted guide, helping you uncover your home’s equity and showing you how to put it to work. From selling your current home to finding the perfect next one, they’ll be by your side, making your transition into this new chapter smooth and stress-free.
Bottom Line
As you look ahead to retiring in 2025, consider downsizing now to unlock your home’s equity and set the stage for your dream retirement. Let’s plan your next chapter together and make every day feel like the weekend you’ve worked so hard for.