Amid pandemic lock-downs and months of remote work, U.S. home buyers are continuing to hunt feverishly for properties in small towns and rural counties.
Interest in country life and small-town homes more than tripled in October from the previous year, following a coronavirus trend of big-city residents looking for more space and a cheaper, lower-stress option for remote work, according to digital real estate broker Redfin.
Searches for city properties also grew this fall, but not as fast as rural retreats, according to the website.
“The housing market overall is very strong,” said Redfin chief economist Daryl Fairweather. Much of the growth in prices has been driven by demand for spacious suburban and rural properties farther from offices and job hubs. “People are leaving the most expensive places.”
The Bay Area has remained among the priciest metros for home sales, with median home sales reaching over $1 million in San Francisco, Santa Clara, San Mateo and Marin counties.
Bay Area retreats a few hours drive from Silicon Valley have seen quick sales and rising prices. Lake Tahoe real estate prices have approached record levels in recent months.
The Redfin study found the shortage of homes for sale most severe in rural and suburban areas. Rural property listings were down 40 percent from the previous year, while suburban homes were off 32 percent. Researchers attribute the drop in supply to the intense demand for homes outside cities.
Nationally, city property listings dipped nearly 15 percent, year-over-year.
San Francisco was the one notable stand-out, with a 70 percent year-over-year increase in homes for sale in October. The Bay Area has long topped the list of regions where residents were looking to migrate from, Fairweather said. The pandemic has made it more possible for tech workers to pick up and put their homes and condos up for sale.
Todd Renfrew, owner of California Outdoor Properties in Vacaville, said his company is having a record run, with more visitors to its website and more sales and purchases.
“This is our best year ever,” said Renfrew, who specializes in ranches and farms in California and Nevada. “People are looking to find a place outside of town.”
Many purchases start off as second homes, but could transition into permanent residences, Renfrew said. Buyers from the Bay Area and Los Angeles have been particularly active, asking about internet service and remote work accommodations. “People are realizing they can work from anywhere,” he said.
A recent buyer from Palo Alto spent $5 million for 180 acres in Pescadero, he said. The family kept their suburban home, but wanted a rural retreat a short drive from Silicon Valley. They told Renfrew, “If we’re going to be stuck in place, we’re going to have some land around us.”
Redfin also found an upswing in people looking to re-settle in two cities popular with Bay Area escapees — Sacramento and Las Vegas. The two cities, along with Phoenix, draw the most interest from buyers looking to change cities. More than 7 in 10 Redfin searchers looking to Sacramento were from the Bay Area.
