The out-of-towners are coming 

A not-so-favorable trend is driving up home prices in mid-sized metro markets. Homeowners from large metro areas who’ve recently sold their homes and made a small fortune are descending on cities like Philadelphia, Atlanta, Dallas and Phoenix with bigger homebuying budgets.

Out-of-towners have anywhere from 12%-29% more to spend than local buyers, driving up prices and putting the squeeze on local home shoppers. This looks like another new reality thanks to the pandemic and the shift to remote worker.

Mortgage rates bouncing back up

Just when we thought interest rates were moderating, volatility returns.

Rates jumped about a half a percent in two days to 5.5%.* Not the news homebuyers wanted to see. There are ways for homebuyers to prepare for the next drop, fingers crossed.

Start by getting pre-approved with your lender and then discuss your options for locking in a lower rate when one comes along. The key is to do the upfront work now and be ready to move quickly when the market changes. If you wait until rates tick down and then act, there’s a good chance you’re going to miss your window.

Home rentals keep jumping

The great remote work migration has certainly shaken up home prices across the country. For example, the salary need to buy a home in Portland is not what it used to be. According to HSH, a home buyer in the Portland Metro area will need an average salary of $109,266.67 to afford the average home in the area, an increase of over 25% year-over-year.

Today, the national average salary needed to buy a home is $76,000, that’s $9,000 below the U.S. median household income. This gap has some homebuyers going the rental route, or relocating to cities that fit their salaries.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. 

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.

* National average rates accurate as of 8/4/22 from Mortgage News Daily and are not advertised rates from Guaranteed Rate. 

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