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Why So Many Homeowners Are Downsizing Right Now
For a growing number of homeowners, retirement isn’t some distant idea anymore. It’s starting to feel very real.
According to Realtor.com and the Census, nearly 12,000 people will turn 65 every day for the next two years. And the latest data shows as many as 15% of those older Americans are planning to retire in 2026. And another 23% will do the same in 2027.
If you’re considering retiring soon too, here’s what you should be thinking about.
Why Downsize?
Now’s the perfect time to reflect on what you want your life to look like in retirement. Because even though your finances will be going through a big change, you don’t necessarily want to feel like you’re living with less.
But odds are, what you do want is for life to feel easier.
Easier to enjoy.
Easier to manage.
Easier to maintain day-to-day.
The Top Reasons People Over 60 Move
You can see these benefits show up in the data when you look at why people over 60 are moving. The National Association of Realtors (NAR) finds the top 4 reasons aren’t about timing the market or chasing top dollar. They’re about lifestyle:
- Being closer to children, grandchildren, or long-time friends so it’s easier to spend more time with the people who matter most
- Wanting a smaller, more functional home with fewer stairs and easier upkeep
- Retiring and no longer needing to live near the office, so it’s easier to move wherever you want
- Opting for something smaller to reduce monthly expenses tied to utilities, insurance, and maintenance
No matter the reason, the theme is the same: downsizing isn’t about giving something up. It’s about gaining control and choosing simplicity. And it brings peace of mind to know your home fits the years ahead, not the years behind.
And the best part? It’s more financially feasible now than many homeowners would expect.
The #1 Thing Helping So Many Homeowners Downsize
Here’s the part that makes it possible. Thanks to how much home values have grown over the years, many longtime homeowners are realizing they’re in a stronger position than they thought to make that move.
According to Cotality, the average homeowner today has about $299,000 in home equity. And for older Americans, that number is often even higher – simply because they’ve lived in their homes longer.
When you stay in one place for years (or even decades), two things happen at the same time:
- Your home value has time to grow.
- Your mortgage balance shrinks or disappears altogether.
That combination creates more options than you’d expect, even in today’s market.
So, whether you just retired, or you’re about to, it’s not too soon to start thinking about what comes next. Sure, it can be hard to leave the house you made so many years of memories in, but maybe it’s time to close one chapter to open a new one that’s just as exciting.
Bottom Line
Downsizing is about setting yourself up for what comes next – on your terms.
If retirement is on the horizon and you’ve started wondering what your current house (and your equity) could make possible, the first step isn’t selling. It’s understanding your options.
Let’s talk. A simple, no-pressure conversation can help you see what downsizing might look like – and whether it makes sense for you.
Home Insurance Costs Are Rising: What Buyers Should Plan For
Buying a home is one of the biggest purchases you’ll ever make. And homeowner’s insurance is what protects that investment. Think of it as your safety net. NerdWallet explains it:
- Covers Repairs and Rebuilding Costs: If your home is damaged by fire, storms, or other covered events, it helps pay for repairs and possibly even a full rebuild, if that’s deemed necessary.
- Protects Your Belongings: It can also cover personal items like furniture, electronics, jewelry, and clothing if they’re stolen or damaged.
- Provides Liability Coverage: And, if someone gets injured on your property, your policy can help cover medical bills or legal expenses.
But that peace of mind does come with a cost, and lately those costs have been rising.
Why Home Insurance Premiums Are Going Up
There are a number of factors causing insurance premiums to rise today. But, in the simplest sense, here’s what’s driving prices up according to the Insurance Research Council (IRC).
Severe weather events and natural disasters are happening increasingly often, leading to more claims. At the same time, homebuilding materials and labor are more expensive. So, when it comes time to work on those claims, insurers have to manage higher costs to repair or rebuild the affected homes.
That combination adds up to higher premiums. You can see how it’s climbed recently in the graph below. Each bar marks the percentage increase in insurance costs for that calendar year.
The good news is, the annual pace of the increase may be starting to ease according to ResiClub and Cotality. By their count:
- In 2023 and 2024, insurance costs went up 14% a year.
- In 2025, they rose about 10%.
- And in 2026 and 2027, it’s expected to go up about 8% each year.
That’s still an increase, but at least the pace is slowing down. And here’s another silver lining.
While insurance costs are rising, mortgage rates are falling. And that can help offset some of this expense. As Michael Gaines, Senior VP of Capital Markets, Cardinal Financial, explains:
“Rising taxes and insurance do create pressure, but they don’t erase the benefits of a lower rate . . . A small rate improvement, paired with the right loan program and smart planning, can still make homeownership possible . . . It’s less about one factor canceling another out, and more about helping buyers layer the right solutions together.”
Costs Are Going To Be Different Depending on Where You Buy
So how much do you need to budget for this? It depends on the price point and location of house, the coverage you need, and more. And just like with everything else in real estate, costs vary by area.
You can get a rough idea of your state’s typical premiums in the map below:
So, What Can You Do About It?
Generally speaking, your first insurance payment will be wrapped into your closing costs. But after that, it’ll become a recurring expense. That’s why knowing these premiums are rising is so important. It helps you factor that into your budget, so you go in with a full picture of what you can comfortably afford.
If you’re crunching the numbers and trying to find other ways to save, here are a few tips from Insurify and NerdWallet that can help you get the best insurance price possible:
- Shop Around – Compare quotes from multiple companies.
- Bundle Policies – Combine home and auto for discounts.
- Ask About Discounts – Don’t miss out on savings you may qualify for.
- Highlight Upgrades – Features like a new roof or storm windows can cut costs.
- Improve Your Credit – A stronger credit score can mean better premiums.
Bottom Line
If you’re thinking about buying a home, don’t forget to plan ahead for your homeowner’s insurance.
While costs are rising, knowing what to expect and how to shop around can make a big difference as you’re budgeting for your purchase. Because this isn’t coverage you’ll want to skimp on. It’s your best protection for what’s likely your biggest investment.
Expert Forecasts Point to Affordability Improving in 2026
Wondering what to expect from the housing market in 2026? You’re not the only one. For the past few years, affordability has been the biggest barrier standing between most people and their next move. And a lot of buyers and sellers have been holding their breath waiting for things to get better. The good news? It’s finally happening.
In 2025, affordability was the best it’s been in 3 years. And experts agree the momentum will keep going in 2026. And that’s based on their analysis of the key factors shaping the housing market in the year ahead: mortgage rates, inventory, and home prices.
Lower Mortgage Rates Are Already Here
Mortgage rates have already come down from their peak. By some counts, they dropped by almost a full percentage point over the course of the last year. And that’s a big deal, even if it doesn’t sound like it. But how low will they go? And should you wait for them to come down more? Here’s your answer.
Forecasts suggest they’ll stay pretty much where they are now and hover in the low 6% range throughout 2026 (see graph below):
Where they go from here really depends on what happens with the economy, the job market, and any changes in monetary policy the Fed makes in the year ahead. The important thing is, they’re already lower than they were just one year ago and that’s ideal if you’re planning a 2026 move.
- For buyers: A lower rate reduces monthly payments and increases buying power. And, that combo helps more people qualify for homes that previously felt just out of reach.
- For sellers: It may be time to accept that rates in the 6s are the new normal. And if you need to move, it’s doable, especially with your equity.
Even More Options Are on the Way
In 2025, the number of homes for sale improved by about 15%. As inventory rose, buyers regained things they hadn’t had in years: options, time to consider those options, and negotiating leverage. That helped restore more balance to the housing market.
Not to mention, the inventory gains are a big piece of what’s helped price growth slow down – which in turn improves affordability.
While the inventory gains this year aren’t expected to be as steep, experts at Realtor.com say the supply of homes for sale should grow by another 8.9% this year.
- For buyers: That means even more choice and more negotiating power.
- For sellers: Pricing your house right will be essential to draw in buyers.
Home Price Growth Is Slowing to a More Sustainable Pace
With more homes for sale, there isn’t as much upward pressure on prices right now. And we’ve seen that shake out over the past year. Even so, the overwhelming majority of experts say, nationally, prices will continue rising in the year ahead – just at a slower pace. On average, they say prices will rise by 1.6% in 2026 (see graph below):
And that’s reassuring if you’ve been fed content on social media saying prices are going to come crashing down. But here’s what you need to remember most about this. It’s going to vary a lot by area.
So, lean on a local agent for the latest on what’s happening where you are. Some markets will see prices rise more than this. Others may see prices come down slightly. It really all depends on conditions in your local market
But overall, prices will continue to rise at the national level. And that’s good for the market as a whole. As Realtor.com explains:
“For homebuyers and sellers, the shift signals a more balanced market—one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers.”
- For buyers: Expect more moderate price growth, not the sudden and intense spikes just a few short years ago. That gives you fewer surprises and more predictability, which makes budgeting a whole lot easier.
- For sellers: This slower price growth restores balance without putting your equity at risk. And that’s a win.
More Homes Will Sell
All of this adds up to a better affordability equation in 2026. And that’s exactly why experts are saying we should see more homes sell (and more people buy) this year.
As Mischa Fisher, Chief Economist at Zillow, says:
“Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026.”
The bottom line is, more people are finally going to be able to make their move this year. So, the question is: will you be one of them? The market is giving you an opportunity you haven’t had in a while. Maybe it’s time to take advantage of it.
Bottom Line
Affordability won’t change suddenly overnight. But, with several key trends working together, it should slowly and steadily improve in the months ahead.
That’s exactly why, in 2026, you should see a market with more balance, more predictability, and more breathing room than you’ve had in years.
Want more information about the opportunities unlocking in our local market?
Let’s chat.
Eastside Stats
The Eastside market is more balanced than it’s been in years—prices have softened and inventory is up, but homes are still selling, the sky isn’t falling, and smart pricing (for sellers) and confident, strategic buying (for buyers) wins the day.
We’re starting the year with 67% more inventory than this time last year, which sounds alarming—but context matters. At 2.6 months of inventory, we’re still solidly in a balanced market, so there’s no need to panic. One of my favorite housing economists keeps saying we’re “back to a 2019 market.” On the Eastside, we actually have 13% more inventory than in 2019, and back then inventory sat at 1.4 months. So… I’m still chewing on that comparison.
Historically, the first quarter tends to start with a bang, though it’s too early to know if that pattern will hold. One wildcard: a meaningful number of sellers chose to cancel listings late last year with plans to relist in 2025. If that’s the case, some of today’s inventory may simply be deferred from Q4. As always—time will tell.
It’s also worth noting that the Eastside is lagging King County overall, which currently sits at 2.1 months of inventory and is “only” 36% higher than last year (and 19% higher than 2019). So while inventory is elevated across the board, the Eastside is feeling it a bit more.
With about half of homes selling within 30 days, the sky is clearly not falling. That said, 57% of sellers needed a price reduction to get sold, so yes—pricing has softened. January is a notoriously wonky month for median price data, but we’re currently down 3% year over year (and up 5% month over month—though that follows an 8% drop the month prior). Zoom out a bit further and the picture changes: since 2020, Eastside prices are up 36%, averaging roughly 7% per year, or about $400,000. Not too shabby.
So what does this all mean?
First: the sky isn’t falling.
Sellers should approach the market as both a price war and a beauty competition.
Buyers can buy with confidence—and if possible, go against the grain. Homes that others overlook often offer the best opportunities (easier said than done, I know).
I’m very curious to see how the rest of January unfolds
Thinking about Selling Your House As-Is? Read This First.
If you’re thinking about selling your house this year, you may be torn between two options:
- Do you sell it as-is and make it easier on yourself? No repairs. No effort.
- Or do you fix it up a bit first – so it shows well and sells for as much as possible?
In 2026, that decision matters more than it used to. Here’s what you need to know.
More Competition Means Your Home’s Condition Is More Important Again
Over the past year, the number of homes for sale has been climbing. And this year, a Realtor.com forecast says it could go up another 8.9%. That matters. As buyers gain more options, they also re-gain the ability to be selective. So, the details are starting to count again.
That’s one reason most sellers choose to make some updates before listing.
According to a recent study from the National Association of Realtors (NAR), two-thirds of sellers (65%) completed minor repairs or improvements before selling (the blue and the green in the chart below). And only one-third (35%) sold as-is:
What Selling As-Is Really Means
Selling as-is means you’re signaling upfront that you won’t handle repairs before listing or negotiate fixes after inspection. That can definitely simplify things on your end, but it also narrows your buyer pool.
Homes that are move-in ready typically attract more buyers and stronger offers. On the flip side, when a home needs work, fewer buyers are willing to take it on. That can mean fewer showings, fewer offers, more time on the market, and often a lower final price.
It doesn’t mean your house won’t sell – it just means it may not sell for as much as it could have.
How an Agent Can Help
So, what should you do? The answer isn’t one-size-fits-all. It’s going to depend a lot on your house and your local market.
And that’s why working with an agent is a must. The right agent will help you weigh your options and anticipate what your house may sell for either way – and that can be a key factor in your final decision.
- If you choose to sell as-is: They’ll call attention to the best features, like the location, size, and more, so it’s easy for buyers to see the potential, not just the projects.
- If you decide to make repairs: Your agent can pinpoint what’s really worth the time and effort based on your budget and what buyers care about the most.
The good news is, there’s still time to get repairs done. Typically speaking, the spring is the peak homebuying season, so there are still several months left before buyer demand will be at its seasonal high. That means you have time to make some repairs, without rushing or stressing, and still hit the listing sweet spot.
The choice is yours. No matter what you end up picking, your agent will market your house to draw in as many buyers as possible. And in today’s market, that expertise is going to be worth it.
Bottom Line
While selling as-is can still make sense in certain situations, in some markets today, it may cost you. So, no, you don’t have to make repairs before you list. But you may want to.
To make sure you’re considering all your options and making the best choice possible, let’s have a quick conversation about your house.
