Hello, LOs!
During the past 14 months, homebuyers have poured out of expensive cities in search of more affordable and spacious homes. The trend drove prices up in many areas, and tight supply ignited fierce bidding wars.
For nearly as long, observers have speculated on the trend's staying power. Stories of cosmopolitan city-dwellers who regretted their move to the countryside quickly emerged.
It turns out, that scenario is fairly unusual. According to a Redfin report, about eight in 10 people who moved have "no regrets," and the same share are actually happier post-move.
The study revealed a key reason why people who moved might be feeling happier. No, we don't have national free mental health counseling. Most people who moved now have more disposable income than they did at the beginning of the pandemic, and they have more house to show for it, Redfin's study found.
"For most people, relocating to a different metro area probably wasn't a knee-jerk reaction to the pandemic," said Redfin economist Taylor Marr. "A lot of Americans had already been considering relocating, but they were blocked from actually making the move because they had to stay close to their office or wanted to live near friends or their child's school."
One thing that could potentially throw a wrench into that housing fairytale is a potential widespread return to the office. While some employers are opting for a hybrid approach — or staying remote forever — others have made it clear they intend to return as early as July.
So, LOs, if new homeowners are called back to the office, might they just opt to sell their homes and return to their high-cost metro areas? And how would that potentially impact pricing and inventory?
Georgia Kromrei
Senior Mortgage Reporter, HousingWire
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