While housing costs on the West Coast of the United States continue to soar, it appears that many homebuyers from the Left Coast are looking eastward to find ideal properties: Indeed, the hottest housing markets in the US currently exist in cities like Boise and Salt Lake City.
Once known for their affordability for homebuyers and reasonable costs of living, states like Idaho and Utah are feeling the pressure and rewards of high housing costs.
A Nationwide Trend?
And it’s really no secret why these states are seeing housing booms. For many people in states like California, Oregon, and Washington, making a profit on a home and moving to less expensive regions in the United States is now a very tempting possibility. To wit, the sale of a million-dollar home in Seattle or Silicon Valley can now afford sellers a bigger home in another state.
Or at least it could a few years ago: In Boise’s hyped-up market, even smaller homes are becoming incredibly expensive and difficult to obtain. This is to say nothing of Colorado; in cities like Boulder or Denver, a $1 million house isn’t exactly a palace these days: In fact, what was once considered a modest starter home in these cities could set you back millions today.
The Power of Bidding Wars
But with residents in states like Washington and California being priced out of their hometowns, it is likely that places like Boise and Salt Lake City will continue to see an influx of new residents. With a hot real estate market, moreover, many buyers are opting to bid up properties by offering large cash payments to sellers upfront. These cash offers are making home sales in some markets incredibly expensive.
So how do new buyers get a foothold in such a market? As always, the real estate sector must be approached with long-term goals in mind. It is rare that a buyer will start off with a million-dollar property. Nowadays, many buyers are opting to start their real estate quest with the purchase of a condominium or a townhouse.
These properties can often be had at a lower cost and can provide solid investments to individuals who want to own their own home without taking on crushing debt or moving to another state. By selling a first or second property, individuals can place a large downpayment on a nicer dwelling. By repeating this process, individuals or families can eventually afford to own their dream house.
It might take a while to get there, but potential buyers should remain optimistic about their chances of finding a house that works for them. As with many things in life, timing in the real estate market is everything. Starting small might take a bit more effort these days; however, the results can truly pay off as markets like Boise and Salt Lake City demonstrate.