Many might have a non-negotiable reason for their move – like a higher-paying job.
Rising mortgage rates have proven hardly the deterrent for homebuyers looking to relocate to another market. That’s because, in part, they are seeking a new home that is more affordable, to begin with, according to a new report from Redfin.
One-quarter (25.1%) of house hunters nationwide looked to relocate to a new metro in February, a record high, based on Redfin’s survey. That’s up from 22.9% a year earlier and roughly 18% before the pandemic.
The number of Redfin.com home searchers looking to relocate to a new metro fell 3.6% year over year in February, compared to a 14.4% drop in Redfin.com home searchers looking to relocate within their current metro.
Those are both the biggest declines in Redfin’s records, which go back through 2018.
Remote workers’ ability to “live anywhere” is also contributing to out-of-market searches.
Because these relocating homebuyers might have a non-negotiable reason for their move – such as for that higher-paying job, or to be closer to family – higher rates are “less likely to deter those homebuyers than ones simply considering a different house within the same town.”
Miami, Phoenix, Las Vegas, Sacramento, and Tampa were the most popular destinations for house hunters looking to move to a different metro in February, Redfin reported.
Those who are relocating are often leaving expensive job centers such as New York, San Francisco, and Los Angeles, the report said.