Market Update February 23, 2022

RENT AND MORTGAGES PUSH HOMEOWNERS TO MOVE!
Well, faster than the bobble-heads on TV have been saying. But because you’re reading this weekly email (and are therefore super informed on all things housing) you knew this was inevitable.

As if the available inventory wasn’t bad enough, there are additional factors that are making relocating for the record number of homebuyers especially tough.

According to Redfin data:
“…32.4% of its users were looking to move to a different metro area in January, outpacing the previous record of 31.5% reported in the first quarter of 2021.”

This is also considerably higher than pre-pandemic times, when only a 25% of users were looking to move to a different metro area.

As prices, mortgages, and rents trend ever upwards, many Americans are considering moving to more affordable cities. Thanks to work-from-home opportunities and a labor shortage, finding work is of little worry.

Luckily Gig Harbor doesn’t rank among the top destinations (#1 Miami, #2 Phoenix,#3 Tampa, #4 Sacramento and #5 Las Vegas). Median rent in these places is exploding.

Whereas rents in the top-50 metro areas rose 19.3% (from December 2020 to December 2021), the top 5 cities saw even bigger jumps, with Miami topping out at almost 50%!

Yikes!

Mortgage rates are also spurring people to move to more affordable places. The 30 year-fixed mortgage rates are up to 4.452% – reflecting a 22.5% year-over-year increase in mortgage payments!

According to the National Association of Realtors:
In the fourth quarter, the average monthly mortgage payment on an existing single-family home rose to $1,240, based on a median home value of $361,700 with a 20% down payment and 3.13% 30-year fixed-rate mortgage, according to NAR’s latest quarterly housing report. This marks a jump of $201 compared to a year ago.