Which States Have the Biggest Price Discrepancy for Homes?

couple discussing with realtorNew York ranked as the state with the biggest price discrepancy for homes, which could be good news for buyers, according to a report.

Home prices in the state range between $65,000 on average and up to almost $1.1 million. The wide price gap means that many households from different income levels have more choices.

Wider Selection

The diverse housing market in New York also indicated that many companies, such as Homestead Road, are buying a house as is from individual sellers. The median salary, however, plays an important role in determining the affordability of certain markets.

Michigan has the second highest price gap for homes. A person only has to earn an annual income of around $40,000 to afford a median-priced house at $160,000. Some properties in the state may even cost at least $33,000, while the high-end price reaches around $420,000. The report also showed that near equality in home prices doesn’t necessarily mean more affordable homes, which is the case in Wyoming, Montana and Alaska.

Existing Home Sales

If you plan to sell a house in New York or Michigan, you may experience more difficulty finding individual buyers than selling it to a real estate company. Existing home sales account for a significant share of the housing market, possibly due to many personal home buyers who wish to move in right away without too much preparation.

However, it’s not that easy and quick to offload a home no matter how willing the buyer may seem. A transaction with an institutional buyer may be a good option. Consider selling the property to those who are willing to buy it in “as-is” condition.

Property sellers in a state with a large price inequality also benefit from more flexibility of setting their asking prices. Depending on market demand and your location, you could even raise the price more than the median value.