You May Have Enough Equity to Downsize — And Buy Your Next House in Cash

You May Have Enough Equity to Downsize and Buy Your Next House in Cash

If you’ve been sitting on the fence about downsizing, here’s something that might surprise you: your equity could open the door to your next chapter — and it might just be a cash offer.

Yep, it’s true. With the way home prices have appreciated over the last few years, many homeowners (especially baby boomers) are sitting on a significant amount of equity — enough to skip the mortgage altogether on their next purchase.

So, How Much Equity Are We Talking?

According to Freddie Mac, since the start of the pandemic (Q4 2019 to Q2 2024), baby boomers saw their overall wealth increase by a jaw-dropping $486,000 per household, and about half of that came directly from home price appreciation.

Let that sink in.

With that kind of equity, downsizing becomes more than just a smart move — it becomes a wealth strategy. Many homeowners are using that equity to become all-cash buyers when purchasing their next home.

More Equity = More Cash Buyers

The numbers don’t lie. We're seeing a record-breaking number of buyers choosing to purchase homes outright in cash. A quick look at the data shows a steep increase in all-cash purchases over the past two decades, with 2024 marking the highest percentage on record — a whopping 26% of buyers are now all-cash.

Why? Because equity is creating real options.

The Benefits of Buying a Home in Cash

If you're considering making your next move without the help of a mortgage, here’s why it might be worth it:

• 💰 Your offer is more appealing to sellers

• 🕒 You can potentially close faster

• 📉 You don’t have to worry about current interest rates

• 🏡 No monthly mortgage payments = more freedom

For downsizers, especially, this can be a game-changer. As The Mortgage Reports explains, “Downsizing promises a better way of life with no mortgage or rent, lower homeownership outgoings, and usually a gap between the sale and purchase prices that provides a handy lump sum.”

And let’s be honest — who doesn’t want a little more freedom, flexibility, and financial peace of mind?

Ready to See What Your Equity Can Do?

You might have more buying power than you think — and it could be the key to simplifying your life and fueling your next move.

If you’re ready to explore how much equity you have in your current home, let’s connect. Whether you're thinking of downsizing locally or starting fresh in a new market, we’ll run the numbers and help you build a plan that works for your life — and your goals.