By Kerry Smith - SEATTLE - More buyers in the U.S. are considering moves outside their current cities. Overall, fewer buyers are on the market this year and total numbers are down; but of those who are still looking, a higher percentage are looking outside their hometown.
Redfin says a quarter (24.9%) of its site users nationwide looked for a new home outside their metropolitan area in January, as remote work and high housing costs led buyers to seek other options.
A year ago, 22.8% of shoppers searched outside metropolitan areas; before the pandemic, it was 18%.
Of the top 10 "most desired cities" in the study, five are in Florida, with Miami taking the top spot for the first time since August 2022. Other Florida cities on the top 10 "most desirable" list include Tampa, Cape Coral, Orlando and North Port-Sarasota.
Influx of Interest for January in Florida cities:
- Miami: 7,200 entry searches compared to 11,400 in 2022
- Sacramento, California: 6,200 compared to 7,200 in 2022
- Las Vegas: 5,700 against 6,900 in 2022
- Phoenix: 5,500 compared to 9,900 in 2022
- Tampa: 5,200 against 7,500 in 2022
- Dallas: 4,400 against 7,300 in 2022
- Cape Coral: 4,200 against 5,500 in 2022
- Orlando: 3,800 against 1,700 in 2022
- North Port-Sarasota: 3,800 compared to 5,300 in 2022
- Houston: 3,700 compared to 2,900 in 2022
The typical Miami home sold for $470,000 in January, compared to the national average of $383,000, but it still tends to be cheaper than the places people come from. The typical home in New York, the main source of buyers moving to Miami, sold for US$650,000 in January.
"Many buyers have come from out of town to the Florida coast in recent months," says Elena Fleck, a Redfin agent in Palm Beach. "Buyers moving from places like New York and San Francisco are helping the local market recover from last fall's real estate crisis. They're not as bothered by high mortgage rates because homes here are much cheaper than in their hometowns, and they get bigger lots, swimming pools, nice weather and lower taxes."
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