Thinking About A Long-Distance Move?
Here’s What You Need To Know
The COVID-19 pandemic and resulting quarantine prompted many Americans to move in 2020. According to Zillow, more than 1 in 10 adults (11%) moved last year, and the trend continues in 2021. Whether you are considering moving for a new job, need more space, want to be closer to family, or some other reason, preparing for this move will take time and money.
If you decide to move long-distance (outside of your metropolitan area), recognize that finding a new place to live is complicated, especially in this booming real estate market. Buyers looking for a home need to act quickly, and if you are moving far away, it may not be easy to take a physical tour of your home before you make an offer to purchase. According to Redfin.com, the average time on the market nationwide is just 16 days, only ten days in Indiana.
Low mortgage interest rates, the number of buyers, and low inventory have all contributed to the housing market boom. The number of homes sold in the U.S. this past year rose 45.9%, while the number of homes for sale fell 46.4%. Demand has driven the median sale price up 26.3% to $377,222 nationwide, and in Indiana, prices are up 17.1% to $240,000.
How To Find A Home Out Of State
Talk to people in your prospective town. Sign up for an online forum (or several) to learn about the area. Hearing about the issues people are discussing (crime, noise, schools, etc.) will help narrow the preferred location for a property within the community. Next, create a list of must-haves and nice to have (number of bedrooms and baths, features, type of property, size of the lot), then watch the market. Sites like Realtor.com and Zillow will email you with new listings that match your criteria, or you can work with a realtor. If you find the house you want online, you may not have time to travel to see the house in person. Are you willing to buy a home without ever touring it in person? While once this may have been unheard of, it's not so uncommon today. A National Association of Realtors survey in 2020 found that 24% of consumers would be willing to buy a home without seeing it in person.
Expect To Pay More
Imagine walking into a store, seeing a refrigerator with a price tag of $2,000, and telling the clerk that you will give her $2,500 for it. Of course, that would never happen in this economy, where refrigerators are aplenty but don’t be surprised if your real estate agent suggests offering more than the asking price on a home you want. Between May 2020 and May 2021, 53.6% of the homes nationwide and 49% of the homes in Indiana sold above the list price, as reported by Redfin.com.
The cities with the highest list price growth in June 2021, compared to a year ago, were Austin, Texas (+34.3%), Riverside, California (+19.6%), and Tampa, Florida (+19.6%), according to a new report by Realtor.com. However, you may still be able to find a reasonable price in the Midwest. It is the only region in the country that saw a decrease in median list price (-2.9%) year over year.
Reasons To Move To Indiana
Lifelong Indiana resident Chuck Vander Stelt, the founder and CEO of Quadwalls.com, shared his list of reasons to move to Indiana. They include:
- "Low taxes, low cost of living
- Robust higher education systems, both public and private
- Stable local economies with pockets of accelerated growth and gentrification
- Housing costs are low, but values are increasing steadily, and in some areas rapidly increasing values persist
- Indiana is a nice, free spirit kind of place to live with strong communities full of Midwestern charm"
Business owners will also benefit from Indiana's talent pool, drawing from top universities like Indiana University, Purdue, DePauw, and Notre Dame. Indiana is also the #1 manufacturing state in the nation, #2 in the U.S. for property tax rates, and overall #5 best state for business in the U.S., as cited by the Indiana Economic Development Corporation.
While moving can feel stressful and overwhelming, it can be one of the best decisions in your life. In fact, 80% of recently surveyed movers in a 2021 Zillow survey said their most recent move was worth it, and nearly 3 out of 5 (59%) reported "positive life events happened after their most recent move." So what wonderful things are waiting for you on the other side of your move?
Is Relocating Right For You?
If you need help forecasting moving expenses and the cost of living in your new community, our team of financial advisors at the Hurlow Wealth Management Group can model relocation scenarios as part of your overall financial plan. For nearly three decades, we have helped clients find clarity, feel confident, and achieve comfort in making major financial decisions like moving. Schedule a FREE consultation today.