Home News Homebuyers looking to relocate due to affordability, Redfin says – here’s where they moved to

Homebuyers looking to relocate due to affordability, Redfin says – here’s where they moved to

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Miami was the most popular destination for homebuyers looking for more affordable housing, according to a Redfin report. (iStock)

Homebuyers looking for cheaper cities are relocating in record numbers, a recent report said.

According to the company’s migration report, a record 33.9% of Redfin users considered moving to another metropolitan area in July and August. That’s up from his 32.6% in the second quarter of this year and the highest level since we started tracking migrations in 2017.

Most of that relocation activity was driven by homebuyers who lived in coastal areas with expensive recruitment centers and wanted to move to more affordable locations.

“A 6% mortgage rate is exacerbating already high home prices, pushing homebuyers, especially remote workers, into looking for more affordable housing,” said Taylor Ma, deputy chief economist at Redfin. “Sustained inflation and weak stock prices are also straining buyer budgets, making the relatively affordable areas even more attractive.”

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Homebuyers attracted to cheaper Sunbelt locations

Homebuyers are trading expensive coastal areas for more affordable warm-climate locations in the Sun Belt, says the report. Eight of the top 10 most popular migration destinations has a median sales price below $500,000, and six of those cities have state income tax exemptions, lowering the overall cost of living.

San Francisco saw its biggest exodus in July and August, with 40,432 Redfin users leaving the city.

Miami is the most popular destination, with over 8,000 Redfin users moving into the city, and “South Florida’s metro continues to hold the top spot for over a year in a row,” Redfin reports. says.

The remaining top five cities were Sacramento, CA, San Diego, CA, Las Vegas, NV, and Tampa, FL.

“Home prices in many popular destinations have risen significantly during the pandemic, but they are still more affordable than where homebuyers are coming,” says Redfin’s report. A typical home sold for $416,000 in August, half the $845,000 median in Los Angeles, which has the highest number of people moving.”

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Cancellations increase in Sunbelt region

Affordability concerns were also a reason why more and more homebuyers pulled out of the deal. redfin saidThe August home sale cancellation rate was 15%, up from 12.1% a year earlier. That’s about 64,000 home-buying deals that didn’t go through.

These four Sun Belt locations—Las Vegas, Nevada, Phoenix, Arizona, Tampa, Florida, and San Antonio, Texas—ranked Redfin’s top 10 migration destinations. But those cities were also he one of the cities with the highest contract cancellation rates.

“These neighborhoods initially attracted home-hunting due to their relative affordability, but the influx of demand caused prices to skyrocket and made them unattractive to many homebuyers,” Redfin said. I’m here.

Declining homebuyers’ appetites mean that those still buying homes have more room to back out, according to the report.

“Funding and appraisal contingencies in the contract mean that the buyer can cancel the purchase if the home has problems, cannot get a mortgage, or if the appraised value differs from the agreed amount.” A Redfin report states: “Some buyers may be pulling out of deals as they wait to see if home prices will go down.”

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