A new report from Redfin says surging mortgage rates and persistently high home prices are motivating many home buyers to relocate to more affordable areas, but they say migration may slow as the economy continues to soften. According to their research, 24.2% of homebuyers nationwide looked to move to a different metro area in Q3 – which they say is a record high. That figure is up from 23.3% in Q2 and 21.6% from one year ago. Before the pandemic, that number was 18%.
“With a recession looming and household expenses high, many people can’t afford to buy a home in an expensive area and/or want to save money in case of an emergency, which makes relocating somewhere more affordable an attractive option…Migration will likely slow in the coming months because the softening labor market …” Said Redfin Economics Research Lead Chen Zhao.