A recent Redfin report reveals a startling shift in those who sought to purchase homes in Q4 2019. Redfin revealed a huge migration of would-be homebuyers moving from metro areas that were above their price ranges to less-saturated and more affordable metro areas.
Specifically, statistics found that 26% of those seeking to buy houses planned to move versus a 25% migration rate for the same demographic at this time last year. This percentage posts an all-time high for this demographic during this quarter.
The report detailed the latest migration analysis, which was arrived upon after perusing more than 1 million Redfin.com users on the hunt for homes across 87 metro areas from October through December 2019.
The study revealed which of the metro areas were losing a greater amount of people due to high home prices and cost of living. These beleaguered metro areas included New York; San Francisco; Los Angeles; and Washington, D.C., all of which reported the highest number of residents looking to move away in this quarter.
Following thereafter, the report detailed the metro areas that were drawing the most home buyers. The data showed that migrants were deserting the more expensive metros and heading for more affordable enclaves, of which Portland, Oregon, was among the most popular.
Nashville, Tennessee, also attracted a heavy influx of hopeful home buyers, as well as Phoenix and Boston. Two previous metro areas known for drawing would-be homebuyers, Charlotte, North Carolina, and San Diego, surprisingly were pushed out of the top drawing spots during this quarter, failing to appeal to as many home buyers as the above mentioned cosmopolitan contenders.
Redfin Chief Economist, Daryl Fairweather, gave some expert insight on what is behind this migration shift, as well as a prediction for what lies ahead: "The current inventory crunch really started building in the fourth quarter, pushing home prices in the expensive coastal cities back up after a slight reprieve earlier in the year. As price increases begin to gain steam again in these areas, we're predicting that migration to more affordable areas will increase, which in turn will begin to drive prices up there, as well."