Numbers from the US Census estimate that in 2011, the most recent year there is statistics released for, 23.1% of the population of San Diego County was under the age of 18. Data from 2000 showed 30.2% of the area's households were made up of at least one child. With significant numbers such as these, it is no surprise that at some point in their lives, most people consider downsizing their home in San Diego once their children have moved.
With the increases in housing prices in San Diego, many homeowners with too much space are taking advantage of the seller's market by selling their current home, purchasing a more size-appropriate residence and put a good chunk of proceeds into their retirement fund at the same time. If you are considering taking advantage of rising San Diego property values, here are a few things to keep in mind.
Sit Down and Decide How Much Space You Need
No matter how many children you have had leave the nest, you are bound to have extra space. Many people just consider the bedrooms, but in reality, having a child move out from home can free up space all over. You may have always felt you needed extra storage room for the past eighteen years, but now your entire house seems less full.
Regardless of whether you've downsized from a household of five to two adults, or if you were a single parent raising an only-child, sit down and assess how much extra space you have now and how much you truly need. With San Diego home values rising, unused space not only requires extra cleaning, utility costs and maintenance, but each square foot is extra money that could be growing in your savings account for retirement.
Find Out What Your San Diego House is Worth
Once you have calculated how much space your new household needs, the next step is to find out what your San Diego house is worth. How would downsizing your home after your children move out affect you financially? For some homeowners, downsizing offers a lump payment from the difference between the selling of their larger home and the purchase of their new accommodations. Others find savings every month by lowering their mortgage significantly. By analyzing your home's value and your financial profile you are able to see the benefits of downsizing on your wallet.
Use This Opportunity as a Fresh Start
After spending two decades as a parent, many homeowners take the chance to downsize as an opportunity to make a fresh start in their lives. Often times this can mean moving from a house to a low-maintenance-living condo. Other people choose to leave busier, more congested areas to relax in lower-traffic neighborhoods. Whatever you do, even if it is simply decorating your new home to fit your new, kid-free lifestyle, use your downsizing to redefine yourself and your living situation.
Thanks to the shortage of inventory on the market, housing prices in San Diego are on the rise. For anyone considering downsizing after all of their children have left home, this is the most ideal opportunity we have seen in the San Diego area in years. To find out how feasible a potential move would be, take a look at a list of recently sold homes.