Home Purchasing Migration at Lowest Level in 18 Months
But then home buying in general slowed in 2023.
According to a report from Redfin, the number of home buyers relocating to a different state is at its lowest level in 18 months.
The migration, driven by the pandemic, dropped to 23.9% in November, a decline for the third straight month. It is a small drop from 24.1% a year earlier. However, it is the first annual decline according to Redfin’s records, down from a record high of 26% during the summer months.
This decline in home purchasing migration, at least in part, is occurring as it becomes less feasible to work remotely. An additional factor is the increase in home prices in more popular migration spots made the idea of moving less enticing to buyers.
In general, home buying slowed in 2023. It was the least affordable year on record for home prices and there was also a severe supply shortage.
This drop in home buying helps explain why migration is slowing, too. However, the rate for home purchasers migrating to other areas remains above pre-pandemic levels of approximately 19%, as some individuals continue to shop for affordability.
For the first time on record, Spokane, WA makes it to the list of popular destinations for home buyers, landing in the number 10 spot. The typical home in Spokane sells for $416,000, compared to $775,000 in Seattle. This explains why Spokane is the number-one origin of homebuyers relocating to Spokane.
Aside from Spokane, the top metros homeowners are moving into are Sacramento, CA; Las Vegas, NV; North Port-Sarasota, FL; Cape Coral, FL; Salisbury, MD; Myrtle Beach, SC; Orlando, FL; Portland, ME; and Nashville, TN.
At the same time, more home buyers are leaving Los Angeles, CA than any other metro in the country. This is the first time on record Los Angeles is the number-one place home buyers are leaving. In addition, it is the first time in almost two years the Bay Area has dropped out of the number one spot for home buyers leaving.In addition to Los Angeles, the top metros homeowners are leaving include San Francisco, CA; New York, NY; Washington, D.C.; Seattle, WA; Chicago, IL; Boston, MA; Philadelphia, PA; Detroit, MI; and Denver, CO.