Prices of urban single-family homes are rising close 20 percent year-over-year, the fastest of all types of home, according to a Redfin report. Urban condo sales are up nearly 30 percent year-over-year, according to the report, signaling that buyers are returning to the city after the pandemic.
Another indication of more buyers looking for homes in the city is online listings of homes in large metros saw a 62 percent year-over-year increase in pageviews, a larger increase than for homes in small towns (30 percent) and rural areas (18 percent.)
“Now that Americans have had a year to consider what the pandemic and its aftermath mean for their lifestyles, we’re seeing a lasting preference for single-family homes — but rural and suburban settings are no longer as popular as they were at the start of the pandemic,” Redfin economist Taylor Marr said in a release. “Many homebuyers are still prioritizing features that were desirable at the beginning of the pandemic, like space for a home office or a big backyard, partly because many people plan to continue working from home. But as people venture out of their homes more often, they’re rediscovering the advantages of living in a city. People want to continue barbecuing in the backyard, but they also want the option of turning off the grill and walking to their local pizza place.”
The median sale price of single-family homes in urban neighborhoods is up 19.4 percent year-over-year to $286,000, a bigger price gain than any other home category, according to the report.
Single-family homes in all types of neighborhoods are selling faster than condos. The typical suburban single-family home spent 25 days on the market before going under contract during the 12 weeks ending April 4, while urban single-family spent a median of 29 days on the market.
However, condo sales are picking up more than sales of single-family homes. The number of urban condos sold was up 30 percent year-over-year during the 12 weeks ending April 4, the biggest gain on record. It’s followed by suburban condos (22.8 percent).