These out-of-towners are coming in with really big budgets,” Daryl Fairweather, Chief Economist at Redfin said.
In addition, Jeff Checko, a realtor and broker with The Ashton Group of RE/MAX Advantage, says people moving from expensive cities are used to taking on bigger mortgages, even if they don’t have the money.
In fact, these out-of-town buyers have housing budgets nearly 50 percent higher than locals, the highest gap of any city, according to a new Redfin report.
I saw the same thing happen in the San Joaquin Valley back in the 1980s and 90s. Fucking Bay Area people were selling their homes for outrageous prices and moving into the valley for 'a better way of life' and drove our home prices and cost of living through the roof.
Unfortunately, the pay scale in the valley was much lower than it was in the Fucking Bay Area, so what used to be the middle class suddenly became lower class.