Searching for a Smaller Home or Condo? Here are the Top Tips for Downsizing
Downsizing can be a great choice for homeowners looking to make a financial or lifestyle change. After all, a smaller amount of space means less money on utility bills and less stress from clutter.
Are you a recent empty-nester? Moving for financial reasons? Or maybe you’ve watched a few episodes of Tidying Up with Marie Kondo and feel inspired? No matter your motivation, you’re not alone—downsizing has become an increasingly popular trend for homeowners everywhere.
If you’re making the move to a smaller place, here are the top tips for a Marie Kondo-style downsizing experience.
Know What You Have
Walk through your place room by room, and make a detailed list of your belongings. A helpful tip for keeping track? If you aren’t in a rush to downsize, take note of each item and how often you use it over the course of a few weeks or a month. That way, you learn exactly what you’d miss most and what you could go without.
Some downsizers use a color-coded sticker system, some jot notes in a notebook, and some just sort things into piles. Find the method that works best for you, and go from there.
…And What You Don’t Need
Once you’ve found out what items aren’t essentials, it’s time to toss them out. Try to focus on things like duplicate items, such as more than one kitchen utensil, and large collections that have accumulated over the years. To paraphrase the aforementioned organizing consultant Marie Kondo: keep the things that spark joy….but get rid of the rest.
There are plenty of great options for rehoming your unwanted items. Try making a little extra money by selling online, donating things to a good cause, or giving items to friends and family.
Maximize Your Space
When your overall amount of space goes down, you’re required to think of ways to use what you have more efficiently. Storage gadgets such as wall racks, built-in shelves, and pull-out cabinets can tuck belongings out of the way and give you a surprising amount of real estate to work with.
You might also have some furniture that can do double duty. Lots of kitchen or coffee tables either come with or can be customized to include drawers underneath, and bed frames are great for hiding away sliding storage units.
Measure, Measure, Measure
Hopefully, you’ll have a solid idea of the space you’ll be moving into—at least as far as square footage goes—so you’ll know exactly how much room you have for all of your belongings.
Once you know the size of your space, break out the measuring tape, and take note of the dimensions of the furniture you’re bringing along. The last thing you want is to haul your couch all the way to your new home only to discover that it doesn’t fit in the living room.
Ready to Make a Move?
We know that paring down your possessions can be tough, and moving comes with a wide range of emotions. Try taking pictures of the things you’ll miss most, so you can keep the memories around in your new space.
Once you’re ready to get started on your new home or condo search, give our team at The Bouma Group a call. With over 35 years of local experience and a wide range of professional expertise, we’re here to make sure your real estate experience is successful and stress-free. 734-761-3060 or info@bouma.com.
Guidance and Support Are Key When Buying Your First Condo or Home
In June, the number of first-time homebuyers accounted for 35% of the existing sales, a trend that’s been building steadily throughout the year. According to the National Association of Realtors (NAR):
“The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012.” (See graph below):
Why the rise in first-time buying?
NAR continues to say:
“The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045. For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage rate may be the clincher.”
Clearly, historically low mortgage rates are encouraging many to buy. With the average mortgage payment now estimated at a lower monthly cost than renting, it’s a great time for first-time homebuyers to enter the market. According to the Q2 2020 Housing Trends Report from the National Association of Homebuilders (NAHB):
“Eighty-four percent of Gen Z’s planning to buy a home are first timers, compared to 68% of Millennials, 52% of Gen X’s, and 21% of Boomers. Looking at results by region shows that over 60% of prospective buyers in the Northeast and South are buying a home for the first time. The share is above 55% in the Midwest and West.”
There are, however, challenges for first-time buyers. A recent survey conducted by NeighborWorks America also notes that understanding the buying process may be the most significant barrier for many hopeful homeowners:
“Homeownership is a particular challenge for many, despite high levels of interest. Americans believe there are many benefits to homeownership and half of non-owners will seek information about the process in the next few years…a large share of non-owners say the process is too challenging and only a minority know where to find advice if they wanted it. And although many would seek the guidance of community and non-profit programs, only one in three non-owners are aware of such services.”
If you’re among the first-time buyers who feel the process is complicated, you’re not alone. If you’re not sure where to begin or you simply want help in figuring out how to save for a home or condo, finding a trusted real estate advisor to work with is a critical step toward your success. A real estate professional can help you understand the process, review your current situation, and guide you with a plan to help you to feel confident when buying your first condo.
Bottom Line
If you’re interested in purchasing a condo or home and need help getting started, let’s connect today so you can take advantage of the support available to guide you through each step of the way. Contact us today at The Bouma Group, Realtors at 734-761-3060 or info@condohotline.com.
Downtown Ann Arbor Condo Market Update – 4th Quarter 2019
The Downtown Ann Arbor Condo Market saw 12 closings in the 4th Qtr of 2019 with three of them being new construction condos at Kingsley Condos. This compares to only 3 closings in the 4th Qtr of 2018.
Three of the downtown sales are located at 515 N. Fifth Ave, which is a 4-plex built in 2013 that was converted into condos and located in the heart of Kerrytown. Unit #1 was priced originally for $1,495,000. The price was lowered to $1,149,900 and sold for $1,115,000 after 189 days on the market. Unit #2 was priced originally for $1,400,000. The price was lowered to $1,200,000 and sold for $1,149,000 after 228 days on the market. Unit #3 was priced at $450,000. The price was lowered to $399,000 and it sold for $400,000 after 217 days on the market.
Sloan Plaza saw 3 sales in the 4th Qtr, which is 9% of the total units in the building.
139 Ashley Mews – priced originally at $595,900, the price was lowered several times down to $450,000. It sold for $445,000 after being on the market for 211 days. This is a 1221 SF, 1 bedroom, 2 bath condo. It last sold in 2014 as a Bank Owned Property for $315,000.
115 W. Liberty – priced originally at $995,000, the price was lowered to $895,000 and sold for $895,000 after being on the market for 172 days. This unique 2,100 SF loft unit is located in the heart of downtown on top of retail space. It last sold in 2013 for $689,900.
111 N Ashley #1007 – priced at $550,000, this Ashley Terrace Penthouse unit sold for $525,000 in 13 days.
Excluding the new construction condos, nothing sold for list price or above in the 4th Qtr. with some of the condos having to lower their prices significantly.
As of January 1, 2020, there are 9 re-sale condos for sale with 3 under contract. There are also 24 condos available at Kingsley Condos where over 50% are now sold. We will be entering 2020 with 33 condos that are ready for occupancy. This is a 27% drop from the 1st Qtr of 2019 when there were 45 active listings.
Adding to the downtown inventory are the pre-sales on up-and-coming developments. The Gallery (21 units – 11 units are pre-sold) , The Garnet (10 units), and 309 Ashley (17 units – 10 are pre-sold). None of these new developments will be ready for occupancy until 2021.
Ashley Terrace has 6 active listings with 2 under contract. The average days on the market for these listings is 146 days.
Liberty Lofts has 1 condo for sale that is under contract. Priced originally at $559,900, the price was lowered to $519,900 and it went under contract after 140 days on the market.
North Main Lofts has 1 condo for sale. Priced originally at $649,900, the price was lowered to $589,000. It has been on the market for 238 days. It last sold in 2016 for $600,000.
As mentioned in previous issues, the downtown market has two dominant demographic groups that are buying. The first group consists of retiring baby boomers who tend to buy larger and higher priced units with one floor living. This demographic group is still growing. The second group consists of students and young professionals who tend to buy smaller and lower priced units and aren’t as concerned about one floor living and parking. It is this second group that is shrinking as they now have the option of renting brand new luxury apartments with beautiful facilities. With all but one of the active condos providing first floor living, the shrinking of this demographic group will not greatly affect the downtown market.
As we head into 2020, the signs are all positive for a healthy downtown market. With an absorption rate in 2019 of 4 sales per month, there is an 8 month supply of inventory. However, interest rates are still at an all-time low, the local economy is very strong with good paying jobs, and inventory is down 27% from last year.
As the market changes, be sure to get the most current information so you can make the right decisions. There are a lot of changes occurring in the downtown area, and being located downtown, The Bouma Group is very aware of upcoming construction projects and inventory. Should you wish to discuss the market, call our office at 734-761-3060 – it would be our privilege to work with you. Feel free to stop in and visit us anytime – we’re located downtown, at the corner of S. Main and Madison.
Get Prepared to Spring Ahead of the Condo Competition!
Spring brings two things: more buyers & more sellers! Get prepared now to stand out in the crowd!
Whether you plan on buying or selling an Ann Arbor Condo, contact the real estate specialists with The Bouma Group to get the answers you need! 888-581-6923 or info@bouma.com.