Real estate expert explains why a new migration trend could be coming
One Florida-based realtor is signaling that Americans may soon see their neighbors packing up for a fresh start in a more affordable housing market.
"Here's an unpopular opinion that most people aren't going to be that happy with, but I think it's going to become more popular, [it's] relocation," Orlando agent and popular TikTok creator Freddie Smith said Friday on "Varney & Co."
"We don't want to leave our jobs and our family and where we grew up, but there are places around the country that you can still grab a home for $250,000 to $300,000," he continued. "And that might be more doable for the younger generation. We might see a lot of migration coming."
Earlier this week, data from Redfin reported that the cost of buying a new house just hit another all-time high. The median U.S. home sale price soared to $397,954 in June — a nearly 5% increase from a year earlier and marking the highest level on record and the biggest annual increase since March.
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Available home supply also remains down a stunning 34.3% from the typical amount before the COVID-19 pandemic began in early 2020, according to a separate report published by Realtor.com.
Most homeowners say they are nearly twice as willing to sell their home if their mortgage rate is 5% or higher, one Zillow survey found. Currently, about 80% of mortgage holders have a rate below 5%.
"If you are fortunate enough to have a family or friend who can help you out to get into a home, that is going to be a good option," Smith said. "If you don't have that option, there's a few others."
"You can work on raising your income, it's never a bad idea to save more money, and you should definitely work on paying off your debt because your student loans, your car payment, and your credit card monthly payments work against you when trying to qualify," the expert added.
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But many homeowners have already decided to relocate, with a Stateline analysis of U.S. Census Bureau finding this month that a growing number of Americans are ditching Democratic-run cities for Republican suburbs in search of lower taxes and more affordable real estate prices.
Some markets where homes are $200,000 or less include two in Smith’s home state, like Lauderdale Lakes and Lauderhill, Florida, and others across the country, such as Akron, Ohio; Detroit; Rochester, New York; Niagara Falls, New York; Albany, Georgia; Lansing, Michigan; Rockford, Illinois; and Cleveland.
FOX Business’ Megan Henney contributed to this report.