Homes rates have soared to exorbitant levels in certain parts of the US.
According to the National Association of REALTORS, in the third quarter of 2017 the median selling price of new single family homes revealed significant differences in some metropolitan areas.
For example, you can buy a home in Appleton, Wis., for $170,000 medium price home, but it will take $607,000 to get a median price house in San Diego. If you can find one, Denver costs you $418,000 for a medium-priced home.
But go to Florida, and you can purchase a home in Panama City for $210,000. In some country areas like Springfield, Ill.; Rochester, N.Y.; and Cleveland, Ohio, you can also get a median priced home for under $150,000.
Some people say no to the major rates, and move to other parts of the state to save thousands on rent and in real estate. Here are a few success stories of people buying a cheaper house in another state:
Home price drop by 80 percent
Patrick Madigan, owner and broker-in-charge for Keller Williams Downtown Raleigh, N.C. at Madigan Realty Co., has managed to sell his client’s house near downtown Raleigh. His family was moving closer to the rest of their relatives in Ohio. They’d purchased their Raleigh home for $225,000 in 2011, and Madigan sold it for $427,000 earlier this year.
Over the last few years Raleigh has been an extremely hot market. But the east side, where his customers lived, appreciates equally fast as downtown attracts more businesses and residents.
On top of that, they literally sat on two lots. So, they were able to sell that too to a developer for nearly $100,000, thus seeing more than $100,000 appreciation on the house itself in just six years.
The customers were excited when talking about the prices in their specific Ohio area. For less than $100,000, they were able to find the perfect home, lowering their financial expenditure by nearly 80 percent, while increasing their square footage by 35 percent.
Their house in Raleigh was right at 2,000 square feet, but they now own 2,700 square feet in Ohio, with about 800 square feet of unfinished basement.
Their current Ohio location is a split-level 4-bedroom with three full bathrooms, designed in 1956. Even with Ohio’s larger split-level, that orientation allows for a larger usable yard space and a large back deck they didn’t have at Raleigh.
While it’s never easy to leave friends and Raleigh is a wonderful place to stay, the clients were very pleased with how it all worked out.
Upgraded to 3 times better, for a 3rd of the price
Justin Udy’s real estate clients moved from California’s very expensive Palos Verdes Estates to Salt Lake City to be closer to their family and take advantage of a business opportunity. They sold their house for $1.35 million in California, which was just a 1,492 square foot house with three bedrooms and one and 3⁄4 bath.
Udy was able to find them a home that was 3 times bigger for their growing family in Utah with 6 bedrooms and 3.5 bathrooms for just $520,000. This house, too, has a larger lot.
They were excited about upgrading their property and spending less, according to Udy, leader of Century 21 Everest’s Justin Udy & Team Real Estate in Salt Lake City.
In the NAR report, San Francisco happens to be the town with the highest median price point — $900,000. Salt Lake City’s are just $293,000.
Retirees get big drop in price
A couple recently retired and moved to Williamsburg, Va., from Ellicott City, Md., to experience a lower cost of living.
Jeff Miller, co-founder of the AE Home Community in Baltimore, sold their 1,900 square feet home for $580,000 to allow them to move to Williamsburg’s 2,800 square feet home that they purchased for $425,000. The huge drop in price helps them not to fret about living the life they dreamed of in retirement.
Their new home has more upgrades and is situated inside a gated community near historic museums, outlet shopping malls and several restaurants. They have managed to sustain their quality lifestyle while reducing their monthly payments on mortgages.