Is it time to downsize, even in this real estate market?

Your home is your sanctuary, but it’s also one of your biggest budget items. And after you retire, it may feel like more house than you need. But in this housing market, when a smaller home with upgraded features may be about as expensive as the one you’re selling, is it still smart to downsize?

In some cases, downsizing is appropriate, but not necessarily money-saving. You may be able to sell your house and buy something cheaper, but it might also make sense to downsize to move closer to family or have less house to clean.

It’s important to be clear on what you want. “Goals are so crucial,” says Juan Hernandezariano, a certified financial planner in Houston. “There are multiple pathways people can take.”

Here are some situations that may match up with a “For Sale” sign. did the math and moved 90 minutes away, where they got a cheaper home and dropped their homeowners insurance by 60%.

“Property taxes also went down since they weren’t in a highly competitive school district,” Hernandezariano says. “They still spent more on gas and water and had to pay for relocation expenses, but overall, they saved monthly.”

You’re in a pricey area

upgrades.

To save money overall, the value of the home you’re purchasing should be at least 20% less than the house that you’re selling, says Diane Pearson, a CFP in Wexford, Pa. community, where they could take advantage of graduated levels of care as they needed it.

“They could stay in their house, but they don’t plan to,” Maye says.

“There is no looking back,” Demming says.

“Her new home has appreciated quite a bit since moving.”