Homeowners looking to move are eyeing cities in this state

(NEXSTAR) – Homebuyers are coping with rising home prices and mortgage rates of nearly 7% and are more willing than ever to buy out of town, according to a new study.

Real estate brokerage Redfin found that a near-record number of potential buyers, 24.1%, looked to move from August to October.

When it came to the most searched cities, the Sunshine State dominated the top 10, despite the devastation wrought by Hurricane Ian in late September. Miami landed in third place overall, followed by Tampa in fifth place, Cape Coral in seventh, North Port-Sarasota in eighth and Orlando in 10th.

Redfin calculates the ranking based on net inflows, or the number of people looking to move into a city minus the number trying to move out.

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Remote work, born out of necessity during the pandemic and now a valued employment criterion for many, continues to facilitate the movement of workers between cities and even states. An October report from the National Association of Realtors found that two types of remote workers overwhelmingly valued above all others were year-round warm weather and, of course, high-speed Internet.

The city of California takes the top spot

The largest city in the nation was not in Florida, however, but in California. Sacramento saw the highest net out-of-state searches among Redfin’s roughly 2 million users.

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Rounding out the top 10 are Las Vegas in second place, San Diego in fourth, Phoenix in sixth and Dallas in ninth.

The top five cities when it came to net outflows were, in order, San Francisco, Los Angeles, New York, Washington DC, and Boston.

Good news for home buyers?

While the number of Redfin users moving is at record levels, home sales across the country are under pressure.

Amid high inflation and rising mortgage rates, pending home sales dipped 4.6% in October, according to the National Association of Realtors, making it the fifth straight month of decline.

“October was a tough month for homebuyers as they faced 20-year high mortgage rates,” said NAR Chief Economist Lawrence Yun. “The Western region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest made a gain.”

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The overwhelming trend identified by Redfin was a shift from high listing prices in San Francisco, Los Angeles, New York and Chicago to cities with lower asking prices, effectively increasing affordability and offsetting some hefty mortgage payments.

There is some good news for home buyers, however, according to Yun: “The coming months should see a return of buyers, as mortgage rates appear to have previously been higher and have been coming down since mid-November.”


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