With rising housing costs and fewer home sales, 4 out of 5 Millennials are interested in buying fixer-uppers, but it’s not the best time to start flipping in most cities. Here’s why.
Real Estate News
Owning a home is about 31 percent or $839 higher than renting, according to a John Burns Real Estate Consulting report. While just a year ago, monthly costs between owning and renting hadn’t changed in 20 years, the cost of owning a home also increased 37 percent in the past year.
And as of June, the median home sale price was $428,379, according to Redfin’s most recent Housing Market Overview. That means a rising housing cost that’s 11.2 percent higher than last June. And 17.4 percent fewer homes were sold.
So is a fixer-upper a good idea? And where should you look?
The majority of the 15 cities where fixer-uppers are less than $100,000 are in the midwest. For example, expect an average of $27,900 in Toledo, Ohio, and an average of $35,000 in Saginaw, Michigan.
But in cities like San Francisco, Austin, and San Jose, fixer-uppers can cost more than $1 million.
Find out more about the state of Fixer-Uppers.
Check out the entire study from Porch.com to find out more about the fixer-uppers and if they make financial sense to you in your area.
