If you have kept up with recent real estate trends, then you probably have read about many homeowners moving out of urban cities and into suburban neighborhoods. Given the shift to a work from home environment for many people, this makes complete sense. In addition, moving to the suburbs typically means a larger home with additional space. Historically, home prices have grown faster in urban areas than in the suburbs. With this said, we have actually seen this flip this year due to the pandemic. Nationally, home prices in the suburbs have moved 3.2% higher since March compared to a 2.3% increase within cities, according to a realtor.com analysis. In South Florida, however, prices in urban areas declined 2.2% since March, while suburban prices are up 0.3%. This is not entirely surprising considering that South Florida had been considered a COVID-19 “hot spot” at one point.
Price growth & time on the market
Did you know? Within the nation’s top 10 largest metros, the median listing price of suburban properties is now up 5.2% year over year. As for urban areas, it’s up by only 2.4%. At the peak of the pandemic in April, the time a typical property spent on the market spiked in both suburban and urban areas. Following the real estate freeze due to the pandemic lockdown, the time it took to sell a suburban home recovered faster. Suburban homes spent only 28.5% more time on the market in early May compared to last year, whereas urban homes spent 34.1% more time on the market.
Currently, the number of suburban homes for sale is down 41.3% compared to last year, while urban homes for sale are down 34.3%. This divergence in available homes began in early April, during the peak of the COVID-19 shutdowns, and has continued to accelerate since. Although many may believe that this may be a great time to find a deal in urban areas, the data show that prices continue to rise in these areas as well. Furthermore, the inventory is still extremely tight and looks to remain this way for some time. If you are in the market to buy a home right now, it is highly recommended that you are pre-qualified and prepared to move forward with an offer as soon as a property hits the market.