The prices of homes have escalated in some parts of the United States to exorbitant amounts.
According to the National Association of REALTORS, median sales price of existing single family homes in the third quarter of 2017 shows huge disparities in certain metropolitan areas.
For instance, you can buy a home for $170,000 median price home in Appleton, Wis., But to get a median price house in San Diego, it would take $607,000. Denver costs you $418,000 for that median-priced home if you can find one.
But go to the warmer state of Florida and buy a home for $210,000 in Panama City. You can even get a median priced home for less than $150,000 in some spots of the country such as Springfield, Ill.; Rochester, N.Y.; and Cleveland, Ohio.
Some people are saying no to the big prices and moving to other parts of the country to save thousands and thousands on housing. Here are some success stories of people who bought a cheaper house in another state:
Reduction in home price by 80 percent
Patrick Madigan, owner and broker-in-charge at Madigan Realty Co. for Keller Williams Downtown Raleigh, N.C., helped sell his client’s house near downtown Raleigh. The family was relocating closer to family in Ohio. They had purchased their Raleigh home in 2011 for $225,000, and Madigan sold it earlier this year for $427,000.
“Raleigh has been an incredibly hot market in the past few years. But the east side, where my clients lived, is appreciating especially quickly as downtown attracts more businesses and residents,” he says.
On top of that, their home was actually sitting on two lots. So, they were able to sell that, too, for almost $100,000 to a developer, while also seeing over $100,000 appreciation on the house itself in just six years.
“My clients were giddy with excitement when they told me about the prices in their specific town in Ohio. They were able to find the right home for less than $100,000, downsizing their financial investment by almost 80%, while increasing their square footage by 35%,” Madigan adds.
Their house in Raleigh was right at 2,000 square feet, but now they own 2,700 square feet in Ohio, with an unfinished basement of about 800 square feet.
Their new place in Ohio is a 4-bedroom split level with three full bathrooms built in 1956. Even with the larger split-level in Ohio, that orientation allows for a larger usable yard space and a big back deck that they didn’t have in Raleigh.
“Although leaving friends is never easy, and Raleigh is a great place to live, my clients were quite pleased with how everything turned out,” he says.
Upgraded to 3 times bigger, third of the price
Justin Udy’s real estate clients moved from the very expensive Palos Verdes Estates in California to Salt Lake City to be closer to family and to take advantage of a business opportunity. They sold their home in California for $1.35 million, which was only a 1,492 square foot home with three bedrooms and 1 ¾ bath.
Udy was able to find them a home that was three times larger home with 6 bedrooms and 3.5 bathrooms for only $520,000 for their growing family in Utah. This home with a bigger lot, too.
“They were excited to upgrade their property and spend less,” says Udy, leader for the Justin Udy & Team Real Estate for Century 21 Everest in Salt Lake City.
San Francisco happens to be the city with the highest median price point — $900,000 – in the NAR report. Salt Lake City’s is only at $293,000.
Retirees get big drop in price
A couple recently retired and moved from Ellicott City, Md., to Williamsburg, Va., to experience a lower cost of living.
Jeff Miller, co-founder of AE Home Group in Baltimore, sold their 1,900 square-foot home for $580,000 to allow them to move to 2,800 square foot home in Williamsburg that they purchased for $425,000. That big drop in price allows them to not worry about living the retired life they have dreamed of.
“Their new home has more updates and is located within a gated community that was close to historical museums, outlet shopping malls, and numerous restaurants,” he says. “They were able to maintain their quality lifestyle while reducing their monthly mortgage payments.”