Here’s why it’s important to know if buyers are upsizing or downsizing.

When people decide to sell their current home and buy another, they typically fit into one of three categories:

1. Upsizing. Whether you’re getting married, having kids, or having more kids, upsizing means that you need more room and a bigger home. 

2. Downsizing. This usually happens because of one of the three d’s: death, divorce, or disease. You might also downsize because you’re buying a second home or because you’re retired.

3. Rightsizing. This is a tongue-in-cheek way of saying that not everyone fits into one of these boxes. A lot of people will overcorrect by getting something big as a status symbol only to regret it later. Others who downsize may end up wanting something a little bigger.

“If interest rates go up, you’ll have to pay more for your mortgage.”

How does this affect you and the market? Baby boomer’s kids are having a large influence on the market right now. We have to keep track of whether they’re upsizing, downsizing, or rightsizing to help with inventory shortages, negotiations, and assist buyers in finding what they need.

What’s going to happen with our market in the future? Some are waiting for prices to stop increasing. What are the reasons that would cause them to come down? Higher interest rates or a major economic crisis. If this does happen and you wait to buy, your home will be worth less, and you’ll have to pay more in interest.

If you have any questions for me about the market, buying or selling a home, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.