It seems like peppered in conversations with clients is the looming question: do I stay in California or consider moving out of state?
Moving out-of-state isn’t a quick decision to make: family, friends, job, a well-built network of community and rhythms. Disrupting the familiar is hard.
Why Home Buyers and Home Sellers are Looking Out-of-State from California
Here are the top considerations for buyers and sellers.
For buyers, the decision to move out of California is often predicated on housing affordability, job opportunities, and quality of life. If the entry level price point in a lot of Southern California suburbs is at $500,000 and up, then it is no wonder that many first time home buyers are considering states like Idaho, Montana, Arizona, and Tennessee as alternatives.
For some sellers, moving out of California might be a part of a retirement strategy. This is a golden opportunity to sell and capture huge amounts of proceeds. In 2020, the net profit of home sellers when they went to sell was already hitting highs of almost $70,000. Home sellers’ return on investment when they go to sell were at roughly 35% ROI!
Home Sellers Making 35% Return on Investment When They Sell
Why would you sell a vacation home? Demand for homes in resort communities like Big Bear Lake, Arrowhead, Palm Springs, and others are booming! Why would you sell your rental? Maybe you are tired of managing the property and want to exit the rental market. Alternatively, you would benefit from a 1031 exchange, sell the current rental, and reinvest into different rental properties with a better rate of return or a newer property with less ongoing maintenance.
