Lifestyle Changes Fuel Housing Choices For Today’s Home Buyers

For quite a few years now, home buyers have sought out the largest homes they could possibly afford – and new home builders were happy to accommodate the growing demand. Figures from the National Association of Home Builders (NAHB) show that the average size of a new home has more than doubled in the past 50 years.

And while homes have been getting bigger, lot sizes have been shrinking. The average lot size has decreased around 6.5% since 1987. Household size has been on the decline as well. The U.S. census bureau statistics show the average household has 2.57 people, down from 3.14 in 1970.

Sometimes referred to as ‘McMansions’, starter ‘faux chateau’ super-sized homes are still being built around the nation – and may still be the choice for families that can afford them. Still, experts declare that the demand for a more modest home is increasing. Baby boomers entering retirement are showing interest in smaller houses that are easier to care for and can be left with peace of mind while traveling.

If your home isn’t exactly right for the way you want to live now or in the not so distant future, it may be the perfect time to sell and ‘rightsize’ with a home that is more in keeping with the lifestyle you want to enjoy.

Upsizing - If the size of your household has expanded with more children, older children or live-in parents, upsizing your home could be the answer that would help the expanded household live more comfortably together.

Staying in the same general area, while moving to a larger home, usually means moving to a more expensive home. That’s all very fine for homeowners whose income has also grown since the purchase of their last home. They simply roll the old home equity into the down payment of the new home and finance the difference between the money down and purchase price.

If you can’t afford a larger home in your current area, you may be able to find the house you desire at a lower price somewhere else. You may even choose to relocate to a different city or state - where the housing prices are considerably lower with a promising job market.

Downsizing – Relocating to a different location is a popular option for retired folks since they are not concerned about having to live near their work place. They can sell their current home and cash out their equity, then turn around and purchase a lower priced home - using the remaining money for their retirement adventures. The new home may be a smaller one, like a condo or townhouse – or a similar size home in a less expensive area.

Retirees may also make the decision to downsize in order to lower their tax bill and live in a house that’s much easier to maintain – a priority for those who want to travel or have physical limitations. New home builders have been heeding the call of home buyers who are increasingly going for less space and more high-end amenities found in the larger homes such as: quality kitchen cabinetry, granite counter-tops, crown molding, flooring, spa tubs, multifunctional rooms and abundant storage.

Cross-Sizing - Changing to a different size or cost of home may not be the only reason to trade-in one house for another. Here are a few reasons why folks may consider moving to a home similar in size or worth:

• Capital Gains tax exclusion that allows couples to keep up to 500, 00 of profit on a home sale tax-free. If your equity is approaching those limits, selling now could save you a lot later.

• There are signs of deterioration in your neighborhood that could cause your present home to depreciate in value if you wait to sell.

• Your present home requires extensive maintenance that you are unwilling to shell out for. Rather than trading up or down, you just get out from under it.

• Another location could provide you with a lower tax rate without having to reduce size or worth.

• Relocation for job commitments may prompt you to move closer.

• Lifestyle changes such as trading a suburban home for a more urban location.

If you are considering ‘rightsizing’ - either downsizing, upsizing or simply cross-sizing - make a sound decision based on lifestyle needs, finances, current property values, and of course – fulfilling your desires and dreams.

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