LOS ANGELES - Higher borrowing rates have sidelined many house hunters and cooled what was a red-hot housing market, one of the most important sectors of the economy. The National Association of Realtors recently noted that sales of previously occupied U.S. homes slowed for the fifth consecutive month in June.
Home prices kept climbing in June — albeit at a slower pace than earlier this year —- even as sales slowed. The national median home price jumped 13.4% in June from a year earlier to $416,000. That’s an all-time high according to data going back to 1999, NAR said.
Because of that, many prospective homebuyers are looking for affordability when it comes to choosing their first-ever home.
A report published by Redfin last week found a record number of potential U.S. homebuyers are seeking to relocate in order to find homes within their budget.
According to Redfin, here are the top cities people appear most likely to try to leave:
- San Francisco
- Los Angeles
- New York
- Washington D.C.
To compile its list, Redfin analyzed searches across more than 100 metro areas from about 2 million of its users and compiled metrics like such as net inflow and outflow, referring to the number of people who wanted to enter a given city compared with the number of people who wanted out of it.
According to the report, these are the cities that may see an influx of homeowners in the coming months due to the most net inflow:
- Tampa, Florida
- Sacramento, California
- Las Vegas
- Cape Coral, Florida
- San Diego
- North Port, Florida
- San Antonio
Analysts at Redfin noted 33% of users searched for homes in new cities in the second quarter of 2022, up from 26% in 2019 during the start of the COVID-19 pandemic.
The Associated Press contributed to this report.