Exodus from California, high-tax states driving unprecedented real estate boom
FILE PHOTO: A "For Sale by Owner" sign is posted in front of property in Monterey Park, California on April 29, 2020. (Photo by FREDERIC J. BROWN/AFP via Getty Images)
Real estate executive Rogers Healy said high taxes in states like California are drastically changing real estate trends.
"We've never seen something like this," Healy told FOX Business’ "Mornings with Maria."
"It's like waiting for people to get an iPhone when it comes out," he added. "We have lines out the door for people seeing houses all across all sorts of price points."
Healy, who is based in Dallas, said hundreds of people per day are moving to his city. He pointed out that 70% of the people moving in are from California and increasing "luxury price points."
He told Maria Bartiromo Tuesday that Americans from regions like California are motivated to move by their high state taxes.
Coronavirus-induced lockdowns also contributed to current trends, he said, leading more buyers to be willing to "overpay."
"Obviously people can exist from home, but they want more of a home to exist in," he said.
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This trend is not limited to Texas. The median price of a home is currently at the highest level in history, hovering around $353,000 — a 17% increase from a year ago, according to Realtor.com.
When buyers hear that "construction costs are the highest they've ever been," they don’t want to wait and more are entering bidding wars, Healy said.
"Homes that historically would sit on the market for 60, 90 days [are now] getting multiple offers the first day on the market," he said. "So, yeah, we've never seen something like this."
Healy also said low interest rates and more people being "qualified to purchase" are other reasons why this is historically unprecedented.
"We're in the epicenter right here in Dallas, there's literally never been a better time to be in real estate," he said. "Once you have, you know, a flood of people moving from affluent, high-tax states, it changes things forever. So I think our new reality is going to settle in and it's going to be interesting to see what happens."