June 6, 2022

Should I Sell My House in 2022?

About Brookdale Senior Living

Brookdale Senior Living offers multiple care levels for seniors in more than 600 communities nationwide. Brookdale helps you find the right care plan for yourself or your loved one. With amenities such as transportation services, salons and private dining rooms and activities such as gardening, fitness classes and trivia nights Brookdale caters to a wide range of interests and needs.

If you’ve been hoping to use your home equity to fund senior living, now may be a good time. As a homeowner, your property may have appreciated more than you think. But as a renter, your rent payment could potentially appreciate more than is comfortable. Either way, it’s important that you get acquainted with the current market. Here are some things that you should know:

1. Houses are appreciating at a historical pace. This past year marks the fastest period of home price growth in American history. For context, in 2012, homes appreciated an estimated 1.3% nationally. By sharp contrast, in the past year homes generally appreciated a whopping 19.8% nationally. For prospective buyers, this isn’t the best news. But for you, dear homeowner, this means that you may be sitting on—or rather, sitting in—a nice chunk of change. This may be especially true if you live in an area that has seen a lot of population growth since you moved in. If you’re beginning to feel that your home has become too big for you, and that your community has become too busy, you may be well poised to sell your home for senior living.

2. Houses are selling at a record-breaking rate. From June 2020 to June 2021, homes on average sold at a record pace of one week of being placed on the market. During roughly the same period, closing on a home took a record-breaking average of 51 days. The demand for new homes is higher now than in recent years, engendering a “seller’s market”. The average seller currently takes home at least full asking price, and many buyers are offering tens of thousands of dollars above asking price to elbow-out the competition. If you’re concerned that your home won’t sell for asking price, statistics suggest that’s likely not the case.

3. Rent is fluctuating wildly. We’ve mentioned that now is generally a good time to be a homeowner and prospective home-seller. On the opposite end lies the renters, who are in a less enviable position. This is because as property prices increase, typically so do rent prices, often at a similarly high rate. Last December, average monthly rents increased considerably by an average of 14.1%. But that’s just the average. If you live in a high-demand area, like Austin, Texas, for instance, your rent may have gone up as much as 40% in a single year. Given the nature of the current property problem, rents are unlikely to stop increasing in the foreseeable future. So, if your rent hasn’t yet begun to outgrow your wallet, market trends suggest that it may soon.

While property values everywhere are increasing, there’s one place of residence where prices have remained relatively stable: the senior living community.

While single family home values appreciated approximately 19.8% last year, average senior living rates only appreciated by 6.15% while nationwide inflation hit 7% in 2021. When compared with other property types, senior living typically offers more cost consistency. And don’t forget that senior living often includes amenities like meals, transportation, home maintenance, lawn care, wellness programs and social events.

Although supply issues are unlikely to work themselves out anytime soon, other factors like rising mortgage rates could spell a slow down for the seller’s market. If you’re looking to start new beginnings, read our e-book here to find out how to start downsizing for a simpler life in senior living.

^{The above content is shared for educational and informational purposes only. The content is not intended to be a substitute for professional or financial advice and should not be relied upon for making financial or other decisions. Please consult your attorney or financial advisor before acting on any content on this website.}