A record 25% of Redfin users looked to relocate to a new metro in the fourth quarter of 2022 due to elevated mortgage rates, high home prices, and economic uncertainty, Forbes reports. While an unfavorable buying landscape is causing some house hunters to migrate to more affordable parts of the country, it’s also forcing some to postpone their purchasing plans altogether.
Markets such as Sacramento, Calif., and Las Vegas, which were among the most popular homebuying destinations throughout the pandemic, posted net inflows of around 5,500, down from roughly 6,500 a year earlier, while Phoenix had one of the most dramatic declines, with a net inflow of about 4,000 in Q4 2022, down from more than 8,000 in Q4 2021.
“Phoenix is typically a huge vacation home market, but I’ve seen a big decline in people purchasing second homes and investment properties lately,” said local Redfin agent Heather Mahmood-Corley. “There are still out-of-towners buying homes and moving here full time, though that has also slowed down over the last several months as mortgage rates have risen. Still, the cost of living in Phoenix is low compared to places like the Bay Area, Seattle, Denver and parts of the East Coast, where many out-of-towners are coming from.”