The few homebuyers who insist on looking for a house have chosen to do so in alternative markets in neighboring metropolitan areas to large cities where they can find slightly more affordable options .
There are two factors that are leading buyers to move to other metropolitan areas: high mortgage rates and high prices, according to with a Redfin report.
Rates have reached record levels exceeding 7% just a few weeks ago, while average prices have shot up, although now there are weeks with a downward trend.
According to the Redfin study, at minus 24.2% of home buyers in the country sought to move to a different metropolitan area than the one they had in mind initially to look for a house or apartment, during the third quarter of the year.
Redfin detailed that this data is a record, since it means an increase of 24.3% compared to the measurement of the second quarter ; but it is also 24.6% more compared to the same period of 2023 and 18% against pre-pandemic move-in wishes.
“With a recession and high household expenses, many people cannot afford to buy a house in an expensive area or want to save money in case of an emergency, making moving somewhere more affordable is an attractive option”, said the head of Redfin Economic Research, Chen Zhao. short-lived, as inflationary conditions limit family budgets more and more .
“It is likely that migration will slow down in the coming months because the weakening of the labor market and the loss of jobs will push more people to stay or move with their families, although It is possible that some had to move to obtain new employment opportunities”, Zhao added.
The company specialized in the real estate sector in the United States indicated that the favorable conditions that persist in the national, allow many buyers to choose to move to other cities far from the centers where they have their jobs.
18 cities buyers are looking to move to
18. From Boston, Massachusetts to Portland, Oregon
9. From Los Angeles, California to Dallas, Texas
8. From New York, New York to North Port-Sarasota, Florida
7. From Chicago, Illinois to Cape Coral, Florida
6. From Los Angeles, California, to Phoenix, Arizona
5. From New York, New York, to Tampa, Florida
4. From Los Angeles, California, to San Diego, California
3. From Los Angeles, California, to Las Vegas, Nevada
2. From New York, New York, to Miami, Florida
1. From San Francisco, California, to Sacramento, California
In some cases, such as Sacramento, although their housing prices are still above the national average, with an average of $560,000 Dollars; are nearby move-in options for buyers in the San Francisco area, where the median price is $1.5 million , according to Redfin.
“It makes even more sense to move to a more affordable region now than when mortgage rates were low, since lower-priced homes offset some of the expense of high rates and accrue less interest ,” said Samantha Rahman, local Redfin agent.
According to the analysis, buyers are looking in greater numbers to leave cities like San Francisco, New York, Los Angeles, Washington DC and Boston.
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