Along with Seattle ranking high on the list of cities people are leaving for cheaper homes, a new analysis by Redfin states that it sales of “starter homes” have dropped 36.5% compared to this time last year. The Seattle based company reports that being the biggest drop of any large metro area in the country. Also reported is the income required to afford those homes is now higher than in 2022. Starter homes in Seattle go for over $500,000.
The interesting news from Redfin is that starter home prices declined over the past year in Seattle. This is also the case in other large West Coast cities. Not many homeowners with good mortgage rates want to sell. Inflation has led to the increased cost of buying a property. Income is also important. Redfin reported last November that a person needs to earn $205,000 annually to afford one in Seattle.
This year it is being reported by Redfin that in order to afford the median-priced Seattle home (approximately $535,000), an annual income of nearly $142,000 to make the monthly mortgage payment is needed. Seattle’s median household income, however, is just $110,000. San Francisco, Austin, and Phoenix are the only U.S. metro areas where starter-home buyers need less income than they did a year ago, according to Redfin. The data shows that at $535K, the median mortgage payment is at $3,545. That’s 4.4% higher than a year ago.
Some people living in Seattle are looking at more affordable places to purchase a home and live. A Redfin report on housing migrations added up the top cities homebuyers are targeting for cheaper prices. Phoenix, Arizona was the top city Seattleites are the people most moves there.
Las Vegas is the number one area folks are leaving their home cities for with Phoenix coming in second. According to Redfin’s data, homebuyers are also leaving LA, New York, Chicago, and the Bay Area for these cheaper cities. It is restless in Seattle as it ranks seventh when it comes to places people are leaving in search of better home prices.
