Homebuyers Have Options

Home prices have reached levels that many of us never thought possible.

The median sales price for a single family home on Cape Cod was $427,000.00 just five years ago. Today it’s $725,000.00

While there are many factors that have influenced the increase, one of the leading reasons is the pandemic. It touched off a buying spree that resulted in homes being sold at prices far beyond what common sense in any other time would say was reasonable.

No one is to blame. Homeowners saw a chance to realize a significant return on their investments. Buyers — influenced by the pandemic — decided they couldn’t wait to purchase the second or retirement home they had been dreaming about. Others just wanted to get their families out of tight urban situations and into the open spaces of the Cape.

Once the price of anything goes up, it very rarely comes down. With inflation somewhat in check, unemployment low, and mortgage interest rates holding steady in the 6% range, the economy can sustain current prices. Hoping for them to drop is rooting for homeowners to lose money and the economy to slip backwards, which isn’t good for anyone, especially for those having trouble buying right now.

Are there options?

Yes.

According to Zillow, the average home value in the U.S. today is $358,734.00.

There are several states with home costs less than that figure. They include:*

Alabama: $225,579

Arkansas: $202,250

Illinois: $256,138

Indiana: $235, 436

Iowa: $213,206

Minnesota: $350,258

*Source: The Ascent, a personal financial services website. Data as of 1Q 2024

Please don’t look at those prices and think “fixer-uppers.” These are nice homes that would simply be more expensive here.

If you’re looking for a house and can’t find one that fits your budget, would you consider buying elsewhere? What are your priorities? What would keep you from moving to Minnesota or Illinois? Family? Employment? Quality of life?

It can be a tough decision, but one that people make every day. Maybe your grandparents or parents have already relocated to the Carolinas or Florida because of the weather and lower cost of living.

Sometimes people are forced into the decision like members of the military. We work with several families each year, who are transferred to Cape Cod. It’s not unusual for them to buy a house based on a video tour! They don’t actually see their new home until moving day.

If buying elsewhere is something you would consider, let’s talk. If you’re looking to upsize or downsize, the equity you have in your current home could go a long way towards purchasing a new house in a lower cost state, as the graphic below notes.

Because of our involvement with the Tom Ferry organization, we know highly qualified real estate professionals across the country who can help you find a home in another state. (Tom Ferry is the nation’s leading real estate business coach.)

It’s not an easy decision. But, if it presents the best path to home ownership for you, one that might be worth seriously considering.

Mari and Hank