Trading down..not as easy as it used to be......

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<p>[Can</a> ‘Trading Down’ Still Bankroll Your Retirement? - WSJ.com](<a href=“http://online.wsj.com/article/SB10001424052748703890904575297181180921488.html?mod=WSJ_hpp_sections_personalfinance]Can”>http://online.wsj.com/article/SB10001424052748703890904575297181180921488.html?mod=WSJ_hpp_sections_personalfinance)</p>

<p>"Trading down to a smaller home is a retirement-planning staple. According to an April study by the Society of Actuaries, 20% of not-yet retirees say they plan to downsize after the last child leaves the nest.</p>

<p>But it is getting a lot harder to do, even for wealthier people.</p>

<p>A study by the Joint Center for Housing Studies at Harvard University, scheduled to be released on Monday, shows that while mobility has slowed across all age groups during the real estate bust, “mobility rates among seniors have posted the sharpest drop.” Trade-downs in March comprised about 8% of total home sales, down from 12% in October 2008, the first year for which there are historical comparisons, according to the National Association of Realtors.</p>

<p>Why are pre-retirees staying put? The housing crash has pounded the higher end of the market, to which many 50- and 60-somethings have graduated. That has narrowed the price gaps between the upper and middle markets, meaning smaller homes aren’t always much cheaper."</p>

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<p>We live in our " starter" house- but because of periods of un/underemployment, high medical bills and paying for private school/college- we are still here- so unless we were gonna live in a tent, there isn’t much to downsize. :wink:
< 1000sqft</p>

<p>Also we do at least live in a neighborhood where we could easily give up our vehicles as the hospital, grocery etc is within walking distance & * some day* I am hoping Seattle will move into the 21st century for public transportation.</p>

<p>We have a separate garage that I wanted to remodel into a MIL apt for my mom to live in or for us to live in and rent out the house if we had to, but H won’t give up his mancave.</p>

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<p>“Also we do at least live in a neighborhood where we could easily give up our vehicles as the hospital, grocery etc is within walking distance”</p>

<p>Sounds good to me.</p>

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<p>^^^ Yes - that’s the ideal set-up for a senior couple. If you really want to stay, you can look into a reverse mortgage eventually, which is a great option for seniors who can remain at home.</p>

<p>So sorry to read about the drop in mobility for seniors. We’re in our mid-50s, and I want out tomorrow. We have to wait another decade to retire, but I will be crushed if we can’t move at that point.</p>