If you’ve been thinking about downsizing but holding off due to high mortgage rates or concerns about affordability, there’s good news: your home equity might be the key to making your next move—possibly even buying your next house in cash.
Equity Is Fueling New Opportunities for Homeowners
Homeowners across the country have seen their equity grow significantly, especially since the pandemic. According to Freddie Mac, the average Baby Boomer household has gained nearly $486,000 in overall wealth since late 2019—half of which comes from home price appreciation.
That surge in equity is now giving many homeowners the freedom to downsize without needing a mortgage. In fact, more people are buying their next homes in all-cash transactions than ever before.
A Surge in All-Cash Buyers
Data shows a record number of all-cash homebuyers in recent years. In 2024 alone, 26% of buyers paid for their homes entirely in cash. That’s a sharp increase from past decades and reflects how homeowners are leveraging equity from their current homes to simplify their next chapter.
Why Buying in Cash Makes Sense
If downsizing is on your radar, here are a few powerful benefits of buying a home in cash:
- Your offer is more attractive to sellers
- You can close faster
- You’re not affected by high mortgage rates
- You’ll enjoy the freedom of no monthly mortgage payments
For many, downsizing offers a better lifestyle—lower costs, easier maintenance, and more financial flexibility. And if there’s a big enough gap between the sale of your current home and the cost of your next one, you could walk away with extra cash in your pocket.
Bottom Line
You may already have what you need to make your next move—your equity. And with the right strategy, you could use that equity to buy your next home without a mortgage.
Ready to explore your options? Reach out to The Audra O’Neal Team to find out how much equity you have—and whether it’s enough to fuel your future.
