Should You Wait to Downsize?

Should You Wait for Kelowna Home Prices to Recover Before Downsizing?

Waiting may make sense if your current home could gain more value than the home you want to buy, and staying still suits your life. But a higher future sale price alone does not guarantee a better move. Compare what you would keep after buying, the cost of waiting, and how each home would work for you.

Think about a couple living in a four-bedroom Kelowna home. Their kids have moved out. Two bedrooms rarely get used, the yard takes more work than it used to, and most daily life happens in a few rooms.

They would like something easier to manage.

But there is one thought keeping them there: “We should wait until prices come back.”

I understand that. When you remember what your home might have sold for a few years ago, accepting less can feel like giving something up.

Before deciding to wait, though, I would want to know what the home you would buy costs today, too.

Start with both sides of the move

When you downsize, your sale price is only part of the picture.

The next home matters just as much. So do your remaining mortgage, moving expenses, and the costs of selling and buying.

A useful starting calculation is:

Sale proceeds − mortgage payout − replacement home price − selling, buying and moving costs = estimated cash released.

That assumes you buy the replacement without a new mortgage. If you plan to borrow, compare the cash left over alongside the new debt and payments.

Here is a simple example.

These are made-up numbers to explain the calculation, not Kelowna valuations or fee estimates. Actual costs depend on the properties and transaction. Build your own budget for selling fees, applicable taxes, legal work, mortgage charges, inspections, moving and any immediate work on the next home.

The question becomes more useful: “Would the home I want and the money left over make this move worthwhile?”

Could waiting leave you better off?

Yes. That deserves a fair look.

If both homes rose by the same percentage, the more expensive home would gain more dollars.

In the rising-price example, the gap grows by $17,500. In the falling-price example, it shrinks by $17,500.

A lower purchase price does not automatically make downsizing financially better in a falling market. Your larger home could lose more dollars than the smaller home saves you.

But those examples assume both properties move together. That is an assumption, not a forecast.

A detached home and an apartment can perform differently. So can two homes in different areas, price ranges or ownership types. A smaller home with the layout and location you want may also cost more than you expect.

I would compare recent sales and available alternatives for both sides of your move before relying on a broad Kelowna price headline.

Put a cost beside waiting

Waiting is easier to judge when you know what staying costs compared with moving.

Suppose your current home costs $1,450 a month to operate and maintain, while the replacement would cost $1,000 on the same basis. That is a hypothetical saving of $450 a month, or $5,400 over a year.

Compare the same expenses on both sides:

• Property taxes and home insurance.
• Utilities.
• Strata fees or lease payments, where applicable.
• Yard care, snow removal and cleaning services you pay for.
• Routine maintenance and a sensible allowance for future repairs.

Include costs covered by strata fees only once. Keep mortgage payments in a separate cash-flow comparison, because principal payments reduce debt rather than simply paying an expense.

If waiting a year improved your price gap by $17,500 but cost an extra $5,400 to live in the larger home, part of that gain would be used up. Selling costs could also change, and repairs could affect either option.

This does not prove that moving now wins. It gives you a clearer comparison.

A smaller home can still have a larger monthly bill

Downsizing can reduce work without reducing every expense.

A strata home may shift some maintenance into a shared monthly fee. That can be useful if you want fewer jobs to arrange yourself. It also means looking beyond the advertised fee to understand future costs.

Review the budget, financial statements, meeting minutes, insurance information, contingency reserve fund and depreciation report. B.C.'s guidance explains that depreciation reports estimate major common-property repair and replacement needs and include funding models. Those models can involve reserve funds, special levies, higher strata fees or borrowing.

A low monthly fee alone does not tell you how well future work is funded.

For a detached replacement, check the roof, heating and cooling equipment, yard and other maintenance needs. Less floor space does not remove those responsibilities.

What would the move change in your daily life?

The financial comparison matters. So does what you are getting for the money.

Would the next home let you manage daily life on one level? Would you have less yard work? Could you travel with fewer arrangements? Would you still have space for guests, hobbies and storage?

There are trade-offs. You might give up a garage, privacy, familiar neighbours or space you use more than you first thought.

Those details deserve as much attention as the number of bedrooms.

Waiting can be reasonable if you still enjoy your home, the costs are comfortable, and the alternatives involve too many compromises. Moving can be reasonable if the numbers work and the next home would make daily life easier, even without a market recovery.

Three numbers I would work out first

Before choosing a date, I would establish:

1. A realistic sale range for your current home, based on comparable sales and its condition.
2. The cost of an acceptable replacement, based on homes you would actually choose.
3. The cash left and monthly costs after moving, including debt, transaction costs and likely repairs.

Then I would test a lower sale price, a higher purchase price and a longer selling period. A plan that only works at the most hopeful numbers needs more room.

You do not need to predict the exact market bottom to decide whether downsizing works for you. You need a clear view of the whole move and a home you would be happy to live in.

If you are thinking about downsizing in Kelowna, contact me to compare a realistic sale range with the homes you would consider buying. We can work out what the move would leave you with before you decide whether to list.

Mark Coons, BBA, CE
Mark Coons Personal Real Estate Corporation
REALTOR® | eXp Realty Kelowna
Team Lead, Selling Okanagan Group
Relocated to Kelowna in 2018
778-946-6454 | [email protected]