Downsizing Struggles As Housing Costs Soar In Washington

You've worked hard your whole life. You've built a home for your large family. Now that the kids are moved out living their lives it's time to simplify and downsize your life. The problem is you're stuck with a big house, and no one can afford to buy it. 

Today, it's much more difficult to downsize in this housing market even if your house is paid for. For some shoppers in Washington state the only way that they can make this happen is by paying cash. (Not a lot of us can do that.) 

according to seattletimes.com,
‘High housing costs and interest rates have people feeling trapped in their homes. Even if someone owns their house outright and cashes out, that money doesn’t go as far as it used to — homes in Seattle are some of the most expensive in the nation, and the price gap between small and big homes is shrinking.’ 

My sister managed to make the transition to downsizing to a smaller home, she was lucky. She had the time and money to be very choosy about when she sold and where she wound up. To me, the funny thing is, she wound up in a neighborhood with other people just like her who were downsizing into smaller homes.  

Think about this. 

This year the average price of a larger home hovers at right around $665,000. That pencils out to 2.2 times the value of a similar home just 10 years ago. Now add to that a shortage of houses available to purchase. 

Another aspect to this whole problem is there seems to be some sort of generational divide between younger generations and empty nesters deciding to hang on to their home rather than sell and take a loss. Larger families that need more than three bedrooms are especially hard pressed to find an affordable place to live.  

Empty nesters with large homes are feeling trapped because of how difficult it is to sell their home. 

As long as interest rates are high and availability of suitable housing is scarce, this problem is going to continue.
Seattle-area owners of big houses stay put as downsizing costs rise | The Seattle Times