Downsizing is very top-of-mind for families across the country and in the Valley. Choosing when to make this major life decision often causes stress, anxiety and confusion. We set out to put the question to rest with Opendoor data at our disposal, setting out to finally solve, once and for all: When is the best time to downsize?
Downsize on Space, Upsize on Luxury
Contrary to popular opinion, moving into a condo can mean getting more bang for your buck. As the market roared back in 2012, single family homes were sold for an average of $103.69 per square foot, while condos were more attractively priced at $100.58 per square foot.
Condos Have Outperformed Homes
There is a misconception that owning a single family home is a stronger investment than a condo. The truth is exactly the opposite. Condos have outperformed in the Phoenix market in every time frame.
Buy A Condo, Free Up Savings
When downsizing, the difference between the value of your existing home and a new condo can mean cash in your pocket. To get the timing just right, a downsizer wants to get the most value for their home and purchase a condo at the right time. Getting this right can mean enlarging your nest egg. The average difference in the sale price between condos and single family homes is $80,670.
Prices of Condos Are More Stable
Since 2010, single family homes have experienced more months of negative price movement than condos. As the population of Phoenix ages and the urban reversal continues, affordable and centrally located condos are at the confluence of positive trends. Overall, single family homes see 12% more months of price depreciation than condos.