With real estate's peak spring season on the horizon, knowing who's buying what in the market can be useful for agents and competing homebuyers. A new study tracks which buyers are local, and which are out-of-towners.
Local and out-of-towner buyers have different search behaviors and preferences, and these differences widen based on the price range of the market being analyzed. Trulia's research found that in the least expensive U.S. metros, local buyers search in expensive markets, while out-of-towners are more likely to search in the less expensive markets. By contrast, in the most expensive metros, home searchers outside the region more commonly look at the most expensive properties. As well, these buyers are typically coming from more expensive metros, and are generally able to afford more than their local peers.
In this report, we look at where searches into each neighborhood have been coming from. We determined the origins of all searches into each ZIP code and categorized them into locals—users within 100 miles of the ZIP code area or within the same metro—and out-of-towners. We then looked at the relationship between the median home value of each ZIP code and the share of searches in that ZIP emanating from locals.
