If you’re in the market for a new home, it’s important to understand the current market trends and which states may be more expensive to purchase a house in. Recent data shows that California, Colorado, and Hawaii are the three states with the highest median sales prices per month in the year before, making them some of the most expensive states to buy a house in. Here are some noteworthy details from each state’s median sales prices per month in the year before:
While these states may be pricey, it’s important to remember that other factors such as job opportunities, the local economy, and quality of life can also play a significant role in deciding where to purchase a home.
Where to Buy a House When You’re on a Budget
The Cost of Buying a House in California
If you are looking to buy a house in California, then you might need to save up! According to recent data, the median sales price in the state is around $537,000 per month. Sure, some areas are less expensive than others, but the housing market in California is quite competitive and not for the faint of heart.
The real estate market in California is quite interesting. On one hand, there’s a definite allure with its coastal living, tech industry, entertainment, and more. On the other hand, California is a state that grapples with natural disasters, including impacts of wildfires, which could drive up housing prices even more.
In some ways, the high costs of living in California are almost a trade-off with its enviable lifestyle and job prospects. However, if you cannot afford this state’s housing prices, then it may be worth considering other options.
Understanding Home Prices in Colorado
Much like California, Colorado has expensive median sales prices. However, it may be slightly more affordable than other states with a median sales price of $537,125 per month. There’s still a high demand for homes in the state due to its recreational offerings, booming economy, and scenic landscapes.
Moving to Colorado may also be a lifestyle choice for people who prefer outdoor activities like skiing and hiking. However, if you cannot afford this state’s housing prices, there are still more options available.
Navigating the Housing Market in Hawaii
Hawaii may not have the highest sales price for a house, but it’s still quite expensive. The median sales price for Hawaii is $805,775 per month, which is a considerable amount of money. This price is due to the state’s island location and limited land availability, making Hawaii one of the most challenging housing markets in the nation.
The competition in the Hawaiian housing market may also be quite intense, which could drive prices up. However, with its stunning beaches, natural beauty, and laid-back lifestyle, it’s no wonder why people are willing to pay the high costs to live in Hawaii.
Factors Contributing to High Housing Costs
A few factors contribute to the high costs of buying a house in these states. They include:
Supply and demand: The demand for homes in these states is much higher than the housing stock available. This situation drives prices up.
Location: In most instances, in-demand housing is located in desirable regions, which contributes to high housing costs.
Mortgage rates: Higher mortgage rates can make it more challenging to qualify for a loan to buy a house.
Taxes: Property taxes in specific states can lead to a higher sales price, making home buying even more expensive.
Cheaper Alternatives to Expensive States
If you want to avoid high housing prices, there are other places you can consider:
Texas: Texas, particularly Dallas, has a vibrant economy and an array of urban amenities. Also, Texas has no income tax and a diverse range of home prices.
Georgia: Georgia has affordable homes, low taxes, and plenty of work opportunities. Atlanta, in particular, has a booming job market.
North Carolina: North Carolina has natural beauty, excellent education, and an outdoor lifestyle. The state’s largest cities, such as Raleigh, are also affordable.
Tips for Affording a Home in a Pricey State
If you want to buy a house in a state with high housing prices, you’ll need to save up and prepare.
Savings: Buying expensive homes also means high down-payment amounts. Determine how much you need to save up and how long it might take by working with a financial adviser.
Research: Do your homework and learn the ins and outs of the state’s housing market. Which areas have lower sales prices? What is the competition like? Etc.
List your wants versus needs: In some cases, you may have a list of dream home requirements you’ll have to put aside to purchase a more affordable home.
Buying a house in a state with high housing prices is challenging, but it’s possible. With the right strategy, budgeting, and the willingness to adjust your wants and needs, you can buy a home and enjoy your life in the location of your dreams.
