News Summary

• U.S. homebuyers interest in relocating has seen a dip for the third consecutive month, says a recent report by real estate agency, Redfin.
• Analysts at Redfin cite the low housing inventory and rising prices in popular migration destinations as possible reasons for the drop.
• Despite the overall decline, Sun Belt cities such as Phoenix and Austin continue to attract out-of-town buyers with their affordable real estate and appealing lifestyle.
• In contrast to previous years, high-cost coastal cities like San Francisco and New York have seen more people moving in than moving out since the start of the pandemic.
• The report also highlights a trend of more homebuyers purchasing properties sight unseen, buoyed by the rise of virtual home tours and remote closing processes.

Hot Take

Well, folks, it seems the game of real estate musical chairs is starting to wind down. After a year of intense shuffle undoubtedly induced by an unexpected work-from-home wardrobe and Zoom fatigue, people are deciding they’re quite happy where they are, thank you very much. Or perhaps they’re just tired of the competitive bidding wars and ever-inflating real estate prices, especially in those ever-so-sunny Sun Belt cities.

But lo and behold, our good old friends San Francisco and New York – you know, the ‘too expensive to ever live in unless you’re a tech tycoon or Wall Street whizz’ cities – are making a comeback. What’s behind this urban renaissance? Could it be the allure of city lights, diverse cuisine, or the simple joy of people-watching in Central Park? Or maybe it’s the jaw-dropping rental drops. Whatever it is, it’s badass, like a phoenix (not Phoenix, Arizona!) rising from the ashes of the pandemic.

Speaking of Phoenix, and it’s Texan cousin, Austin – you can’t keep these Sun Belt cities down, can you? These places have sun, they have charm, they have reasonably priced homes, and they’re drawing in those migration-loving homebuyers like a moth to a flame—or, considering their climates, like a snowbird to a sunny beach.

Lastly, let’s tip our hats to the brave souls that have embraced technology and taken the ‘blind date’ approach to home buying – purchasing properties sight unseen. It’s like online dating, but instead of possibly spending a lifetime with someone you’ve never met, you’re just, you know, investing your life’s savings. No pressure at all! So, here’s a round of applause for virtual tours and remote closing – the unsung heroes of our current real estate realm.

Original article: https://www.inman.com/2024/01/02/pandemic-relocation-boom-wanes-as-remote-work-cheap-houses-fade/