As mortgage rates hover around 7%, many buyers are hesitant to enter the market. However, for seniors who have lived in their homes for decades and are looking to downsize, today’s real estate landscape presents several opportunities. While some challenges remain, increased inventory and strong home equity gains could make now a great time to make a move.

More Inventory Means More Choices

One of the biggest advantages for downsizing seniors is the increase in available housing inventory. The market now has a five-month supply of homes, meaning there are more options for those looking for a smaller, more manageable property. Unlike the fiercely competitive market of the past few years, where bidding wars were the norm, buyers today have more negotiating power and time to make a decision.

Negotiation Power is Stronger Than Ever

Homes are now selling for about 2% below asking price on average—the largest discount in two years. For seniors making a transition, this is a golden opportunity to negotiate a lower price or request seller concessions, such as covering closing costs or making necessary repairs. This shift in market dynamics allows for more favorable terms when purchasing a downsized home.

Equity Gains Can Ease the Transition

Seniors who have owned their homes for 20+ years have likely seen substantial appreciation in their property values. Despite market fluctuations, long-term homeowners still stand to make a solid profit when selling. This equity can be leveraged to purchase a smaller home outright, eliminating the need for a mortgage and shielding them from high interest rates. Alternatively, some may choose to rent and use their equity to bolster retirement savings.

A More Balanced Market Means Less Pressure

Unlike in recent years, where homes were selling in days or even hours, properties are now spending an average of 57 days on the market—the longest in five years. This allows downsizing seniors more time to sell their current home at a fair price and make a well-thought-out decision on their next move without feeling rushed.

Is Now the Right Time to Downsize?

While affordability remains a concern for many, seniors with significant home equity and the ability to purchase in cash have a unique advantage. The combination of increased inventory, better negotiating conditions, and the potential to sell at a profit makes this a promising time for those looking to simplify their living situation.

For seniors considering a move, working with an experienced real estate professional can help navigate the current market and make the transition as smooth as possible. If you’re thinking about downsizing, now may be the perfect time to explore your options and find a home that better suits your lifestyle.