As the market continues to change, and many continue to buy and sell, we want to take a look at what sets small towns apart, especially in the Columbia River Gorge. Although the thought of the market crashing is scary, Hood River and surrounding areas might not be affected like you think.
If you are one of the 8,000 residents who reside in Hood River or one of the surrounding areas in the Gorge, you would probably agree that we classify ourselves as part of a “small town.” When looking at the real estate market, it’s important to understand that market trends in cities or larger suburbs, might not carry over into the small towns that we call home. Not only do small towns consist of different market trends, but there are many other factors that make up small town markets.
Even though supply and demand is a major concern as the market neutralizes, the small town bubble doesn’t seem to be facing these same problems.
According to the NAR (National Association of Realtors), “Among respondents who closed a sale in October, the respondents reported that 85% of existing-home sales buyers purchased property in the “suburbs”, “small town”, “rural area”, or “resort area” and the remaining fraction of 15% percent in the “central city/urban area”. This is larger compared to the historical average of about 80%, also the share in February 2020.”
Thirty-one percent of respondents also reported that compared to January 2020, they have more clients who live in the city who want to purchase a property in the suburb.
ASIDE FROM SUPPLY & DEMAND
Not only is supply and demand a much more minimal problem in these more rural areas, but there are actually many other factors to why the market in these areas is less affected by a crash or recession. “There are several indicators that point to the rise of the suburbs and small towns, for now. A daily indicator that points to the greater economic activity arising from greater mobility is the Apple® Maps Mobility Trends index. The index is based on requests for route changes relative to January 13 (base= 100),” the NAR explains.
- More traveling in smaller cities than in larger cities
- More traveling in counties with summer destinations
The data on rising home sales in the suburbs and small towns and vacation sales indicate that the travel to these areas was not just seasonal but that travel to and demand for homes in these areas rose as a result of the pandemic as people escaped the cities and also found leisure in outdoor activities. The ability to work from home provided greater opportunity to stay in these areas and perhaps scout for a home.
TRUST THE EXPERTS
We pride ourselves on striving to be the most knowledgeable real estate professionals in the Columbia Gorge. We are happy to help answer any questions you might have and help evaluate your concerns. We offer amazing agents who will be there with you from start to finish. We will help you make the best decisions throughout the buying process whatever the state of the market and will do our best to make sure any doubts you might have had turn into a realistic possibility of owning a home.