Suburbs or City? Here's Some Insight

 

• The number of home shoppers looking for homes in the suburbs has been growing at a faster rate than that for urban homes as home shoppers are showing an increasing preference for lower-density areas. Woroking from home and less acutal commute has easily assisted on this decision making process for many. 
  
  
• The search criteria has changed from year over year as well. More rooms, yard, parking spaces, have all been the top priority of many searches. 
  
  
• Due to more demand (more home shopping activity) and lower supply (fewer new listings), suburban home inventories are dwindling at a faster rate than in urban areas, and this trend is continuing in many major markets. Current Interest rates also play a large factor in this spike in home shopping acitivty. 
  
  
• Also due to increasing demand and more limited supply in some neighborhoods, this is driving up the avergae pirce poitns of many different areas, and homes are snapped up increasingly quickly in the suburbs compared to urban homes. 

The pent-up demand for homes since the summer of 2020 has lead to a surge in many markets across the coutnry, in general. Whether driven by a desire for more space, less dense neighborhoods, lower prices, pakring, home shoppers showed an increasing preference for suburban real estate as they returned to the market. While housing markets in urban areas also out-performed expectations, their suburban counterparts experienced greater growth in home shopper interest, greater listing price growth when compared to early March trends, and dwindling inventories as homes were snapped off the market more quickly than last year. We are seeing a slight (ever so slight) increase in invenotry in some suburban market, freeing up buyers from a few potnetial bidding wars, but all in all, this trend is contuning for high demand and low(er) supply. 

This year, it is expected that the homebuying season will extend further into the winter than your conventional 'spring market craze' as the market continues to work through pent-up demand and interest rates continue to remain low. There is no timeline where we will see this trend stop, but if you are a city-goer, this may be a GREAT time to jump into your major city market.