Your 5-Step Strategy for Smart Downsizing

In the vibrant Miami real estate market, downsizing doesn’t mean downgrading. Whether you’re adjusting to a new life stage, managing a property post-divorce, or seeking the simplicity of a low-maintenance lifestyle as you age, Miami offers a variety of smaller homes and condos that could better fit your evolving needs.

Embracing the Upside of Downsizing in Miami

  1. Set Your Vision and Understand Constraints Kick-off your Miami downsizing journey by defining what you want in your new abode. Is being near Miami’s sun-kissed beaches a must? Do you crave a hassle-free condo lifestyle with luxury amenities? Or perhaps a cozy bungalow in a peaceful, walkable neighborhood? Consider your mobility needs and healthcare accessibility, especially if you’re navigating life changes such as divorce or retirement.
  2. Discover Your Ideal Miami Sanctuary Armed with your wishlist, it’s time to explore Miami’s real estate landscape. Our expertise spans from the heart of downtown to serene gated communities, ensuring you find a space that resonates with your desires. We can connect you to exclusive listings, from modern apartments to charming townhomes, ensuring a match that reflects your taste and necessities.
  3. Strategically Market Your Current Property As you contemplate your move, we’ll craft a personalized plan to market your current property. Our approach intertwines comprehensive market analysis, strategic pricing, and a dynamic advertising campaign across digital platforms and local networks, enhancing visibility to potential buyers.
  4. Declutter with Purpose Simplify your transition by sorting through your belongings well in advance. Embrace the Miami lifestyle by choosing decor that complements your new, easy-to-maintain space. We can provide resources to help you sell, donate, or pass on items, ensuring your move is as streamlined as your new home.
  5. Leverage Professional Assistance Downsizing can be daunting, but you’re not alone. Whether it’s professional organizers or a specialized senior move manager, there’s a network ready to support you. If finances are a concern, we’ll discuss leveraging your home’s equity to facilitate a smooth transition.

Is Your Current Residence Holding You Back? If you’re contemplating a lifestyle that aligns more closely with your current needs, let’s connect. We’re dedicated to guiding you through the Miami real estate market to a home that promises more freedom, more joy, and a perfect fit for your next chapter. Contact us for a personalized consultation and discover the full potential of downsizing in Miami.

Is a Crash Coming in the Housing Market?

No, most industry experts do not think the market will crash. Housing economists point to five main reasons that the market will not crash anytime soon: 1) low inventory, 2) lack of new- construction housing, 3) large amounts of new buyers, 4) strict lending standards and 5) fewer foreclosures. Here more details on each 5 points.

I.- Inventories are still very low: The National Association of Realtors says there was a 3.3-month supply of homes for sale in July. Back in early 2022, that figure was a tiny 1.7- month supply. This ongoing lack of inventory explains why many buyers still little choice have but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.

II.- Builders didn’t build quickly enough to meet demand: Homebuilders pulled way back after the last crash, and they never fully ramped up to pre-2007 levels. Now, there’s no way for them to buy land and win regulatory approvals quickly enough to quench demand. While they are building as much as they can, a repeat of the overbuilding of 15 years ago looks unlikely. “The fundamental reason for the run-up in price is heightened demand and a lack of supply,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “As builders bring more available homes to market, more homeowners decide to sell and prospective buyers get priced out of the market, supply and demand can come back into balance. It won’t happen overnight.”

III.-Demographic trends are creating new buyers: There’s strong demand for homes on many fronts. Many Americans who already owned homes decided during the pandemic that they needed bigger places, especially with the rise of working from home. Millennials are a huge group and in their prime buying years. And Hispanics are a growing demographic also keen on homeownership.

IV.- Lending standards remain strict: In 2007, “liar loans,” in which borrowers didn’t need to document their income, were common. Lenders offered mortgages to just about anyone, regardless of credit history or down payment size. Today, lenders impose tough standards on borrowers — and those who are getting a mortgage overwhelmingly have excellent credit. The median credit score for mortgage borrowers in the the second quarter of 2023 was a high 769, the Federal Reserve Bank of New York says. “If lending standards loosen and we go back to the wild, wild west days of 2004-2006, then that is a whole different animal,” says McBride. “If we start to see prices being bid up by the artificial buying power of loose lending standards, that’s when we worry about a crash.”

V.- Foreclosure activity is muted: In the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That’s not the case now. Most homeowners have a comfortable equity cushion in their homes. Lenders weren’t filing default notices during the height of the pandemic, pushing foreclosures to record lows in 2020. And while there has been an uptick in foreclosures since then, it’s nothing like it was.

All of that adds up to a consensus: Yes, home prices are still pushing the bounds of affordability. But no, this boom shouldn’t end in bust.

In closing, remember that informed decisions are the foundation of successful real estate investments. We’re here to provide the knowledge and insights you need.

Feel free to reach out with any questions or concerns.

Ilonka Castillo

Broker Associate | The Keyes Company | 305.979.7650

What’s Driving Your Desire to SELL Right Now?

If you’re contemplating the sale of your home at this moment, it’s likely due to a significant change in your life. While factors like mortgage rates do influence your decision, it’s important not to let them overshadow the primary reasons for your contemplated move.

Indeed, current mortgage rates are on the higher side, which can impact affordability. Consequently, some homeowners are delaying their selling plans to avoid acquiring a new home with a higher mortgage rate.

However, it’s crucial to acknowledge the importance of your evolving lifestyle and changing needs. As a recent article aptly points out:

«Regardless of what direction interest rates and home prices take, there are occasions when homeowners must relocate due to factors such as a new job, a growing family, divorce, bereavement, or other significant life changes.»

Here are several common motivators for people who are choosing to sell their homes today. You may discover that one of these resonates with you and provides sufficient impetus to make a move, even right now:

1. Relocation: Various circumstances may lead to a desire to move to a new area, such as a job change, a wish to be closer to friends and family, a dream of living in your preferred location, or a simple desire for a change of scenery. For instance, if you’ve recently secured your dream job in another state, you might be contemplating the sale of your current home to facilitate your move.

2. Upgrading: Many homeowners decide to sell in order to transition into a larger home. This is especially common when there’s a need for more space for entertaining, a home office or gym, or additional bedrooms to accommodate a growing family. For example, if you’re residing in a condominium and your family is expanding, it might be time to search for a more spacious home that aligns with your evolving needs.

3. Downsizing: Homeowners may also opt to sell when there’s more space than needed due to a recent departure of a family member, retirement, or a desire for a more manageable living situation. For instance, if you’ve recently retired and are looking for a change, you may be considering a smaller home that’s better suited to your new lifestyle.

4. Change in Relationship Status: Divorce, separation, or marriage can be compelling reasons for individuals to sell their homes. For instance, if you’ve recently gone through a separation, it might be more practical to sell the property and find a place of your own.

5. Health Concerns: When homeowners face mobility challenges or health issues necessitating specific living arrangements or modifications, they may opt to sell their current house in favor of a more suitable alternative. For example, you might be exploring the sale of your house to finance a move to an assisted-living facility.

Despite the challenges posed by higher mortgage rates and increasing property prices, it’s important to remember that your unique needs and lifestyle hold significant weight. As a recent Bankrate article underscores:

«The decision to sell your home is a highly personal one. There are numerous crucial considerations, both financial and lifestyle-oriented, to ponder before listing your property… Your future plans and aspirations should be integral components of this decision-making process.»

In Conclusion:

If you’re considering the sale of your home to find one that better aligns with your evolving needs, don’t hesitate to reach out. By doing so, you’ll have a knowledgeable guide to assist you throughout the process and aid you in locating a home that truly suits your requirements.

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