Demand Increasing In Pricey Coastal Metros
Big, pricey metros are making a comeback as Americans bounce back to their pre-pandemic jobs and tastes.
Eight of the 50 most populous U.S. cities saw an increase in the share of homes selling above their list price in February, according to new Redfin data. Half of the metros are in the Bay Area or New York.
In San Francisco, more than 57% of homes sold for more than their original list price, up 7.5% annually.
Nassau County, NY, San Jose, CA, Milwaukee, San Antonio, New York, Portland, OR, and Philadelphia rounded out the list.
The pandemic decimated housing markets in crowded cities as buyers sought outdoor amenities and more space. Many remote workers are still content to live outside of the big-city bustle in relatively affordable places.
But back-to-work mandates in both the government and private sectors are beginning to change the buying landscape in these cities.
“Many home shoppers are looking to balance their personal and professional lives by buying in areas that are close enough to the office to commute a few days a week, but offer more space, lower prices, and a slower-paced lifestyle than a large metro,” Hannah Jones, Realtor.com senior economic research analyst, commented.
At the same time, buyers in the popular but pricey metros are still willing to pay well over the national average for a home.
“The Bay Area has an unending population of people with enormous swaths of money,” said Josh Felder, a Redfin agent in the Bay Area.
“A decade or so ago, we all thought the growth in home prices was unsustainable, but they just keep going up and up. That’s partly because there aren’t enough homes for sale, and partly because tech continues to boom despite ups and downs in the stock market and geopolitical uncertainty.”
In everyday America, however, fewer homes are selling above asking.
Across the country, 20.5% of homes sold for above their original list price in February, down from 22.8% YOY. Nearly two-thirds sold for less than their original list price.