Homebuyers are trying to escape the big cities as inflation and interest rates rise throughout the country. According to the real estate company Redfin:
More homebuyers looked to leave San Francisco than any other major metro, followed by Los Angeles, New York, Washington, DC and Boston. That’s determined by net outflow, a measure of how many more Redfin.com users looked to leave an area than move in.
Breitbart News also reported that homebuilders are also struggling amid the nation's economic crisis. Earlier this month, the National Association of Home Builders announced that its monthly confidence index plunged 8 points in October. This is the tenth consecutive month of falling confidence, the longest stretch of declines on record.
"Sights set on Miami"
In addition to inflation, rising mortgage rates continue to scare people thinking of buying a home. The most popular destinations are where homes are at an "affordable cost" or at least lower than in the area where they reside:
Home buyers leaving New York are most commonly searching in Miami, where the weather is warmer and homes are less expensive... And buyers looking to depart Boston are flocking to Portland, ME, where the typical home costs roughly $200,000 less.
Pending home sales, whose contracts have already been signed, but the sale has not yet closed, also recorded a 35% decrease. “This represents the largest annual decline and the fewest homes under contract..." "Both pending home sales and mortgage applications fell below 2018 levels," the real estate company said on social media:
Both pending home sales and mortgage applications fell below 2018 levels, signaling a serious housing market correction.
"We are in for further sales declines, but those should eventually bring price relief," said Redfin Economist @TaylorAMarr. #housing
- Redfin (@Redfin) October 28, 2022
