Is it the right time to downsize your Charlotte home?
We work with home buyers every week who have (smartly) decided that now's a good time to sell the family home and settle into something a little more manageable. What market-specific and economic factors make now a good time to downsize in Charlotte? We break down the factors one-by-one.
1) Charlotte is a very much a seller's market.
2) Developers in CLT are investing in Boomer-ready properties.
3) "Downsizing" is more economically viable than its ever been.
Charlotte: The Seller's Market to End All Seller's Markets
By far and away the biggest reason to sell your home and move into something a little smaller right now in Charlotte is that the market still favors sellers. Inventory is historically low and though it seems like there's a ton of new building going on, development still isn't keeping pace with housing demands. Millennials and incoming residents to Charlotte are competing for the same properties in the same hot neighborhoods, so sellers have a distinct advantage.
You may have read about bidding wars and multiple offers, now the norm in many of Charlotte's best neighborhoods. Sellers with square footage to offer will undoubtedly see lots of traffic as ageing millennials, many of whom are starting families, search for homes. Sellers today can get top-dollar for their homes, but they should still present a marketable, attractive property. Staging, updating, and general sprucing-up isn't lost on Charlotte's market and will in fact help your home sell faster and for more money, even in a hot market.
The Baby Boomer Development Boom in Charlotte
Developers in the Southeast are betting big on Boomers. With over 75,000,000 Baby Boomers ageing out of "McMansions" worldwide, developers are investing in properties to appeal specifically to this market. That's true here: Active Adult communities in Charlotte are incredibly popular and several massive new projects are currently underway. Communities that offer maintenance-free living and a community-like feel are incredibly popular among seniors. Here in Charlotte, some of the hottest selling 55+ communities are near Lake Wylie, Lake Norman, or commuter cities like Davidson, Huntersville, and Mooresville.
A trend among Boomer buyers is the desire for downsized luxury. Developers anxious to tap into the discerning-but-downsizing market are building luxury properties - many of them "attached" - all over town. Luxury condos and townhomes are proving particularly popular for retirees as they require little maintenance and are inherently secure. They're also more likely to fit into walkable infill neighborhoods where downsizing sellers want to stay or gain access to.
The Economic Advantages to Downsizing
More than at any point in recent history, downsizing pays. Many homeowners are still stuck under hefty mortgages with sky-high interest rates after years of "ownership" and are anxious to relieve that burden. Selling in a hot market, buying a smaller property in cash (which, by the way, makes you an attractive buyer in the competitive Charlotte market!), and pocketing the extra for travel, visiting family, and lifestyle expenses is more and more attractive as Boomers live longer lives.
Even younger sellers are seeing economic advantages to downsizing. Spending less on a mortgage gives these sellers an opportunity to pay down student loans and contribute more to retirement savings. Saving an extra $500 a month for 30 years can provide the average American nearly $1.5 million more in retirement savings! Downsizing also provides tangential benefits of lower home maintenance costs and lower taxes, too.
Are you ready to talk about downsizing?
We're happy to talk openly with you about what your home is worth and what it will take to get it sold. We're your friends in the complicated world of Charlotte real estate and we're excited to chat.