Itâ€™s easy to have tunnel vision when youâ€™re shopping for a home. For instance, youÂ may have your heart set on living in a certain major market or favorite neighborhood. However, if home values there exceed your budget, you can find yourself over-extended or frustrated.
New research shows that more home shoppers are widening theirÂ home search map. You may find that choosing a smaller market or a less expensive suburb can yield more house for your money. Itâ€™s crucial to do your homework and research different markets carefully before committing to a locale.Click to see today's rates (Sep 23rd, 2017)
Based on new data from Redfin, 21 percent of Redfin users in the second quarter of 2017 hunted for homes beyond the metro area where they live. Redfinâ€™s report revealed these key findings:
The top 10 metro markets (ranked by net outflow of users) and their top destination markets are:
The top 10 metro markets (ranked by net inflow of users) and their top origin markets are:
The takeaway here is simple: shoppers are broadening their horizons and reaping the benefits.
â€śBuyers who canâ€™t afford a home in their current city are exploring what is available elsewhere,â€ť Taylor Marr, a Redfin data scientist who conducted the underlying research, said in a prepared statement.
â€śWe are already seeing strong buyer demand and competition in mid-tier cities like Sacramento, Phoenix and Atlanta. As home searches evolve into purchase offers and home sales, we anticipate prices and competition will continue to grow in those markets.â€ť
Alina Ptaszynski, Washington, D.C.-based spokesperson for Redfin, agrees.
â€śThereâ€™s a lot to be enjoyed in some of these smaller cities and mid-tier markets beyond affordability," he said. "Many of the urban renewal trends that make some of these more expensive cities like San Francisco and New York so popular are happening in smaller cities, as well,â€ť
â€śFor example," Ptaszynski explains, "In Omaha, thereâ€™s a flourishing downtown with an emerging food scene and a number of craft beer breweries opening up. You donâ€™t have to be in Brooklyn or Oakland to enjoy that kind of urban experience.â€ť
Stretching your home search boundaries is easier for some than others, of course. You need to have a job that will allow you to relocate or work remotely.
If you need to live near family, such a move may not work. And if you have kids, you want to think carefully about your new locationâ€™s school district.
â€śBut for folks with more flexibility, it certainly pays to explore new cities. And resources online make it easier to see what else is out there,â€ť says Ptaszynski, who thinks this trend will increase in coming years.
Eager to house hunt beyond your familiar borders? Ptaszynski suggests these tips:
â€śHomeownership may seem out of reach for some financially. But perhaps the best solution is to expand your scope geographically,â€ť notes Ptaszynski.
Also, donâ€™t be afraid to look at a different type of home, such as a smaller house, condo, or fixer-upper.
â€śLook around and you may be surprised by what you can find that works for your situation,â€ť she says.
Today's mortgage rates make buying a home more affordable than ever. However, this may be offset by rising real estate prices. It may pay to get your home now before rates and prices start another round of increases.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Deborah C. Television Crewer
The Mortgage Reports is part of my morning routine. As I read, I learn more, and have come to understand the mortgage industry. I can't thank you enough!
Don B. Retired
The Mortgage Reports has helped me so much. I can't thank you enough.
Dick B. Director of Special Lending
I read The Mortgage Reports because it delivers timely, up-to-the-minute mortgage news. Keep up the good work.
2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)