Homebuyer Interest in Vacation Towns and Suburbs Has Soared Since the Pandemic

Rhea-AI Summary

Redfin's recent report highlights the surge in popularity of vacation destinations and affordable suburbs, particularly since the onset of the coronavirus pandemic. El Dorado County, CA, ranked first, saw a 36% increase in home prices, while the median days on market fell by 50 days. In contrast, traditionally hot markets like Arlington County, VA have cooled down despite a 4% rise in prices, indicating a shift in buyer preferences. The report analyzes 10 hot and 10 cooling U.S. housing markets, correlating data with remote work trends.

Positive

• El Dorado County, CA sees a 36% year-over-year increase in home prices.
• Median days on market for homes in El Dorado County decreased by 50 days.
• Growing interest in vacation towns correlates with remote work policies.

Negative

• Arlington County, VA, previously booming due to Amazon's HQ2, is now cooling.
• The market in Arlington County has decreased interest in condos, as buyers prefer larger homes away from metro areas.

SEATTLE, March 10, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — Housing markets in vacation destinations and relatively affordable suburbs of big cities have heated up more than any other area over the last year, a time period that starts with the onset of the coronavirus pandemic in the U.S., according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Places like Lake Tahoe, Cape Cod, and suburbs of Chicago and New York City are gaining popularity as homebuyers take advantage of remote-work policies to prioritize affordability and personal preferences like proximity to nature and recreation over living near the office.

This is according to a Redfin analysis of the 10 U.S. housing markets that have heated up most over the past year, and the 10 that have cooled down most. Redfin's ranking is based on year-over-year change in home prices, home sales, the share of homes that sold above their list price, the speed of home sales and Redfin.com searches.

Vacation towns and suburbs are heating up most

El Dorado County, CA—an area that spans from the eastern outskirts of Sacramento to the southern part of Lake Tahoe—is number one in Redfin's ranking, with measures of homebuyer competition growing more than any other U.S. county over the last year. Home prices increased 36% year over year in January, and the median number of days on market fell 50 days from the year before.

"Parts of El Dorado County, like Lake Tahoe and the upscale community of El Dorado Hills, have been hot throughout the pandemic, partly thanks to remote work," said local Redfin agent Ellie Ruiz Hitchcock. "About half of buyers in El Dorado Hills are coming from the Bay Area and half are locals, including people coming from neighboring Sacramento, who are upgrading their homes. Tech workers moving out of Silicon Valley are seeking larger homes, more overall space and simpler lifestyle at a fraction of the cost. Most homes in the area are receiving multiple offers."

U.S. counties that have heated up the most (January 2020 to January 2021)

Rank	U.S. county	Parent metro area	Median sale price	Median sale price, YoY change	Median days on market	Median days on market, YoY change (in days)	Share of homes that sold above list price	Net inflow of Redfin.com users searching in the area
1	El Dorado County, CA (Lake Tahoe)	Sacramento, CA	$592,500	36%	25	-50	37.4%	2199
2	Santa Cruz County, CA	Santa Cruz, CA	$1,000,000	18%	38	-50	49.7%	720
3	Deschutes County, OR (Bend)	Bend, OR	$509,450	24%	8	-66	43%	1818
4	Kendall County, IL	Elgin, IL	$274,500	22%	16	-54	31.8%	365
5	Barnstable County, MA (Cape Cod)	Barnstable Town, MA	$514,875	31%	24	-46	36.7%	1953
6	Charles County, MD	Washington, DC	$350,000	21%	25	-38	44.4%	810
7	Burlington County, NJ	Camden, NJ	$264,000	23%	32	-34	37.6%	299
8	Frederick County, MD	Frederick, MD	$375,000	19%	27	-27	39.5%	1188
9	Ocean County, NJ (Jersey Shore)	New Brunswick, NJ	$339,950	31%	34	-40	36.3%	683
10	Orange County, NY	Poughkeepsie, NY	$344,950	29%	46	-29	40.7%	1191

Expensive East Coast job centers are cooling down 

Arlington County, VA, home of Amazon's second headquarters in Crystal City, is ranked number one on the list of housing markets that cooled down most from January 2020 to January 2021. But the housing market is so hot throughout most of the country that even in the market cooling most, prices are up 4% from last year, and 23% of homes are selling above list price.

That's an about-face from late 2018, 2019 and early 2020, when homebuyer interest in the areas surrounding Crystal City skyrocketed after Amazon's HQ2 announcement. But with the surge in remote work over the past year, living close to the office isn't as important as it once was and housing markets in expensive job centers are suffering. The cooldown in Arlington County is particularly drastic because it was skyrocketing a year ago, just before the onset of the pandemic. It's also worth noting that Charles County, MD and Frederick County, MD, both part of the Washington, D.C. metro and home to farther-flung D.C. suburbs, are both on the list of places heating up most.

"Although single-family homes in residential parts of Arlington County are still hot and most are receiving multiple offers, condos have cooled down since the pandemic started a year ago," said local Redfin agent Mara Gemond. "Arlington County is developed along a transportation corridor, with dense, high-rise condos located within two or three blocks of metro stations, then townhouses a little farther away, then single-family once you get out into the residential neighborhoods. Those blocks right next to the metro have taken a nosedive because people want bigger houses, they don't want to share spaces with their neighbors and they're realizing they don't need to live close to transportation if they're not commuting into the office."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/hot-housing-market-pandemic-vacation-towns-suburbs/

About Redfin
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 nationwide brokerage website, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 95 markets in the United States and Canada. Since our launch in 2006, we have saved our customers nearly $1 billion and we've helped them buy or sell more than 310,000 homes worth more than $152 billion.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

 

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SOURCE Redfin

FAQ

What did the Redfin report on March 10, 2021, say about housing markets?

The report indicated a surge in interest for vacation towns and affordable suburbs since the pandemic.

Which U.S. county saw the highest increase in home prices according to Redfin?

El Dorado County, CA reported a 36% increase in home prices.

What percentage of homes in El Dorado County sold above list price?

Approximately 37.4% of homes in El Dorado County sold above their list price.

How did Arlington County's housing market change according to Redfin's report?

Arlington County experienced a cooling in its housing market despite a 4% price increase.

What is the significance of remote work policies mentioned in the Redfin report?

Remote work policies have shifted buyer preferences towards larger homes in suburban areas rather than urban centers.