Source: Redfin —
SEATTLE–(BUSINESS WIRE)– (NASDAQ: RDFN) — A record 33.9% of Redfin.com users nationwide looked to move from one metro to another in July and August, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That’s up from 32.6% in the second quarter and about 26% before the pandemic.
The U.S. housing market has slowed considerably from the height of the pandemic homebuying frenzy, and home sales are down 20% from a year ago. But the share of relocating buyers out of all buyers is at its highest level since at least 2017, when Redfin started tracking migration data.
“The overall slowdown and the popularity of relocating are both due to high home prices and mortgage rates that have doubled since last year,” said Redfin Deputy Chief Economist Taylor Marr. “Six percent mortgage rates are exacerbating already-high home prices and motivating homebuyers–especially remote workers–to leave expensive areas for more affordable ones. Persistent inflation and slumping stocks are also cutting into buyers’ budgets, making relatively affordable areas even more attractive.”
Homebuyers are leaving expensive coastal areas at higher rates than a year ago
More homebuyers left the Bay Area than any other metro in July and August. That’s determined by net outflow, a measure of how many more Redfin.com users looked to leave a metro than move in. Next come Los Angeles, New York, Washington, D.C. and Boston, all expensive job centers highly populated by remote workers with the flexibility to relocate.
Migration out of four of those five places–Los Angeles, New York, Washington, D.C. and Boston–increased from a year earlier. That’s partly because of high mortgage rates and economic woes, including inflation, making it more difficult to afford homes in those places.
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