Large metropolitan housing markets may be making a comeback.
The latest monthly page-view report by online real estate company Refin reveals a year-over-year jump of 200% within cities in October that is the biggest seen to date this year.
The equivalent increase within rural areas was even larger at 235%, but it was down its peak of 273% in August.
These trends are notable because they could be early indicators that the wave of people leaving cities may have crested. The availability of low-rate financing, more limited supply outside large metros, progress in vaccine development, and reports of rising infection rates in even rural locations may be among the reasons why.
The number of homes available for sale was down 40.9% in rural areas and 31.9% in suburban locations during the four-week period ending Nov. 8. In big cities, that number was down just 14.5%. Listings in large metros were up 13.7% during that same period, compared to 13.4% for suburban locations and just 8.8% for rural markets.
"Rural areas and small towns remain desirable — especially for families who need space to accommodate remote work as the pandemic persists — but record-low mortgage rates are motivating people to search in cities, too," said Redfin Chief Economist Daryl Fairweather in a press release. "Many buyers are crossing their fingers that restaurants, bars and shops may be bustling again in the next year or so, and they're looking to invest in the eventual resurgence of cities."
There are questions about whether page views will result in actual transactions or not, and year-over-year gains in pending sales numbers remain stronger for rural and suburban markets than for big cities. These were 37.4%, 36% and 26.1%, respectively, during the four-week period ending Nov. 8.
