If retirement is on the horizon, now’s the time to start thinking about your next chapter. And you probably want to make sure you’re set up to feel comfortable financially to live the life you want in retirement. What you may not realize is you likely have a hidden goldmine of cash you’re not thinking about—and that’s your home.
Data from the Federal Housing Finance Agency shows that home values have gone up nearly 60% over the last 5 years alone:
And that appreciation gave your net worth a big boost. According to Freddie Mac, over the same five-year period:
Boomer overall wealth increased by $19 trillion,or $486,000 per household,half of which is due to house price appreciation.
So if you’ve been in your house even longer than that, chances are you have even more equity in your home. If you want access to more of the wealth you’ve built up, it’s worth thinking about selling your house to downsize.
Why Downsizing Might Be the Right Move
Selling now so you can downsize into a smaller home, or one in a more affordable area, could free up your home equity so you can feel confident retiring. Whether you want to travel, spend more time with family ,or feel financially secure, accessing your equity can make a huge difference.
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.
How a Smaller Home Can Help
- Cut Your Cost of Living
Data from AARP shows the top reason adults 50+ move is to reduce expenses. - Simplify Your Life
A smaller home means less upkeep and more time for what matters most. - Boost Financial Flexibility
Selling your home converts equity into cash for investing, paying debt, or building security.
The First Step Toward Your Next Chapter
If downsizing sounds appealing, working with a real estate agent can help you plan your next move and navigate the process smoothly.
Bottom Line
If you’re planning to retire in 2025, now may be the perfect time to downsize and unlock your home equity. Connect with a local agent to start planning today.
