There could be several reasons why homeowners have decided to stay put for the last 4 years.

The pandemic has certainly played a role in those deciding to wait for that perfect time to move. Are you one of those would-be sellers? If you are, here are some reasons based on my interviews with potential sellers:

1) Economic uncertainty: Homeowners are hesitant to sell during times of economic uncertainty or fluctuations in the housing market. Prices have increased at a record pace since 2016. Logic tells us what goes up must come down, and that has always been the case in our past economic housing patterns. I believe so many are gambling that prices will hold or even rise more. But with rising interest rates for would-be homeowners, that window is slowly coming to a close. However, due to this lack of inventory, we have not yet seen a downturn in prices as we did in the 1980’s when rates rose to historic levels peaking at 19.5%. Rates have risen at the fastest pace on record, going from 2.8% over a year ago, to almost 7% today.

2) Lack of suitable housing options: Many baby boomers want to downsize as children have left the nest and there is just too much empty space. Maintaining the home is also getting more difficult as time moves on. Homes are much like people, as they age they require more care and maintenance just to keep status quo. My clients tell me they wish to move into a situation where maintenance is no longer an issue. They would prefer a ranch style condominium or apartment with no stairs to navigate with laundry on the main floor. Those properties at the moment are difficult to find and if one is available, the demand is so high that one would be competing with others to make that purchase. When looking at senior apartments, hesitance stems from high rental prices along with loss of privacy. As for senior communities, there are so many more options than choices our parents had when it was their turn to move. I believe so many of us just don’t want to take the time to visit these senior communities or are worried about cost and floor plans. These communities have implemented upgrades to meet the needs of the boomer crowd, such as gyms, indoor pools, and activities galore.

3) Emotional attachment: Homeowners many have strong emotional ties to their property and community, making it difficult to leave. In my studies of my thousands of clients, fear of change is the number one underlying cause for procrastination and putting off a move that would truly meet the current needs as opposed to when the home was purchased years ago.
The top reason for not moving is that the process is too overwhelming, downsizing a lifetime of ‘treasures’. But again, behind all of the reasons not to move…FEAR OF CHANGE!

4) Moving expenses: Moving can be costly, and some homeowners may not have the finances to cover the expenses of moving. However, with the huge increase in homeowner equity, the cost of moving has been offset by this appreciation and these fees are a small fraction of the equity received by the sale of the home. Downsizing companies offer reasonable cost solutions to help with selling and parting with personal property. Also, the would-be buyer may help by purchasing furniture and other property as most are coming from apartments and it is so much cheaper to purchase the seller’s dining room set and furniture.

Now, I’ve given the reasons that today’s baby boomer sellers are staying put for now. But I want to issue one caveat to my readers. Crisis management is the absolutely most devastating way to be pressured to move. Crisis management means that the homeowner(s) is put in a position where a move is immediately necessary. Examples would be: a fall or multiple falls, loss of a partner or spouse, financial loss, or a diagnosis which makes navigating the home difficult and unsustainable. When mired in this situation, so many moving parts have to take place that the homeowner must seek family or friends to make all decisions as to finding a home, preparing the current home for sale, selling the home, having to make health and financial decisions, and you get the picture. No one wants to be put under such incredible pressure, which in itself can exacerbate the already untenable situation.

A friend sent me an email stating to me that we all know how much money we have, but do we know how much time we have. That really resonated with me. It’s time to really take stock in our current life situations, so we can truly make the best decision for our immediate future, since time is fleeting and constantly moving. For all of you thinking of moving but are stuck in procrastination, know that freeing up your equity and downsizing can give you a freedom you have never experienced. Try to imagine what a new lifestyle could offer: no maintenance to worry about, no isolation, money in the bank that can last a lifetime, and new surroundings that match who you are TODAY! Whatever you decide, know that you are not alone. We are all creatures of habit and will resist change at all costs. Know thyself, is the best advice for all of you baby boomers thinking about the future in these most critical years of your life!