small homes

Small Homes Are Just As Good As Large Homes

 

By: Ian Golightly MBA, Realtor

Naturally, our brains are programmed to think ‘Bigger’ is better. To be honest, that is not true for real estate if you are planning to make a house your primary home.  Since the pandemic, we’ve been allowed to reflect on the most important things. The time to reflect on their living lifestyle has given them the chance to reevaluate for already homeowners.

George Ratiu, a senior economist at realtor.com says,

“The very nature of the pandemic, through the health implications, social distancing, and need to isolate, has really brought a central focus on the importance of home for most Americans…In a sense, it has elevated real estate markets as a centerpiece of our lives.”

It has brought attention to possibly moving to a new home that better fits their current need for many. A study from the National Association of Home Builders has revealed that:

“When asked more specifically how the pandemic may have impacted their preference for home size…21% or about 1 out of every 5 buyers, do want a larger home now as a direct result of the health crisis, while another segment – 12% – would prefer a smaller one instead.”

Typically in hindsight, many would expect that preferences would be leaning towards the ‘need’ and ‘want’ of more space, but interestingly, a portion of homeowners want less and are open to small homes. Sometimes less is better, and more is unnecessary.

If you live in a large home and not utilizing every single room, it may be worth considering living in a smaller home. The unique thing about the housing market is that it is full of opportunities. Chief Economist Danielle Hale from Realtor.com says:

“In a real estate market that is tipped in the favor of sellers, boomers and older homeowners are really the ones holding the cards…Those who are selling homes can use the profits to help them buy new ones.

If you are a current homeowner, you will most likely have some equity in your home, or you can sell your home for more than what it would have sold a year or 2-years ago. According to a report from the National Association of Realtors (NAR):

“Home sellers cited that they sold their homes for a median of $66,000 more than they purchased it. Sellers 22 to 30 years gained the least at $33,400 in equity compared to sellers 66 to 74 years gained $100,000 in equity as they likely had lived in their homes for a longer period of time.”

In today’s housing market, the market still favors homeowners who are ready to sell their homes and make a move. If you’re thinking about downsizing, contact me to understand your needs and find a home that meets your criteria. Small homes are on the rise and it may be fitting for you. If you’re unsure about small homes and how they can benefit you, please don’t hesitate to contact me.

I’ve been living in small homes (less than 2,000 sq feet) for the past 5+ years and I’m enjoying every single bit of small homes.