(NEXSTAR) – A combination of economic uncertainty, high valuations and rising mortgage rates has caused Americans to consider moving en masse in some US cities. Investigation From real estate broker Redfin.
An analysis of user data found that expensive coastal cities topped the list of places residents sought to leave in the summer, with San Francisco, Los Angeles, and New York each in the top 10.
“The overall slowdown and popularity of relocation is due to both higher house prices and mortgage rates doubling from last year,” said Taylor Ma, deputy chief economist at Redfin. Interest rates are exacerbating already high home prices, prompting homebuyers, especially remote workers, to move away from expensive neighborhoods in search of more affordable housing. The downturn is also putting pressure on buyer budgets, making the relatively affordable area even more attractive.”
People are leaving, but where?
Based on user data, the study also categorized the top urban destinations and top out-of-state destinations with the highest expected net outflows.
For San Francisco residents, the number one destination was Sacramento. San Francisco citizens were ready to leave the Golden State and saw Seattle as the premier out-of-state destination.
For the Angelenos, San Diego was the top destination and Las Vegas was the top out-of-state destination. New York City residents targeted their new homes in Philadelphia more than any other city, including New York.
The remaining cities in the top 10 cities where most Americans are leaving had the same top destinations and top out-of-state destinations. In order, Washington DC (Salisbury, MD), Boston (Portland, Maine), Chicago (Los Angeles), Detroit (Cleveland), Seattle (Los Angeles), Minneapolis (Chicago), Denver (Chicago).
Redfin says the number of buyers considering moving is the highest since the company began tracking migration data, but the overall housing market has cooled from its frenzied peak during the pandemic.
Sale of existing homes 7 consecutive months of decline In August, the National Association of Realtors announced Wednesday. Compared to August last year, he’s down a whopping 19.9%.
NAR chief economist Lawrence Yun said he doesn’t believe the trend will change in the coming months and possibly years.
“Some homeowners have been reluctant to trade up or down in recent years after maintaining historically low mortgage rates, and the need for more new home construction to boost supply. “Rising mortgage rates are clearly hampering the housing market.”
What are the most popular destination cities?
Rising mortgage rates and economic concerns appeared to play a role when it came to cities most targeted by homebuyers looking to move in July and August.
Eight of the ten most popular cities have median sales prices below $500,000. Six out of ten are in states with no income tax.
Another pattern of most targeted relocation cities was weather. 9 out of 10 cities are known for their temperate climate.
According to the survey, Miami ranks as the top 10 cities people want to move to. Sacramento; San Diego; Las Vegas; Tampa, FL; Phoenix; Cape Coral, FL; Portland, Maine. and San Antonio, Texas.