Homes in high-fire-risk locations typically sold for $550,500 in April compared to low-fire-prone homes that sold for $431,300.
Median Sale Price of High-Risk Homes Jumped +52% During Pandemic
The median sale price of a typical home located in a high-fire-prone suburban area sold for $550,500, an increase of +52% since the pandemic’s onslaught, according to Redfin. Meanwhile, the median sale price of suburban low-fire-risk homes jumped +41% during the pandemic to $431,300.
These sale prices represent the biggest premium, $119,200 or +27.6%, since at least 2017. Comparatively, homes in high-fire-risk suburban areas sold for $56,700 or +18.5% more than comparable homes in high-fire-risk areas two years earlier.
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Why the Price Discrepancy?
Homes in high-fire-risk suburban areas tend to be larger (about 2,000 square feet) and located near expensive West Coast metros. The size of a typical home in a low-fire-risk suburban area came in at approximately 1,706 square feet.
Sheharyar Bokhari, Redfin Senior Economist, said, “Suburban homes tend to be more expensive because they’re large, and demand for large homes skyrocketed during the pandemic as Americans sought respite from crowded city life. Pandemic buyers also hunted for deals due to surging home prices, and while fire-prone homes aren’t cheaper on average, buyers may feel they’re getting more bang for their buck because they’re getting more space.”
Bokhari added, “And for some pandemic buyers, the fire-prone home they bought in suburbia was actually cheaper than their last home because they were relocating from somewhere like San Francisco or Seattle.”
Faster Sales of Homes in High-Risk Suburban Locations
In April 2022, 62.4% of homes in high-fire-risk suburban areas sold within two weeks. 55.1% of homes in low-fire-prone suburban areas sold within two weeks.
The typical high-risk home sold in just 16 days in April compared with 20 days for the typical low-risk home.
Another comparative data point to watch as the market shifts is one of price cuts. In April, 21.9% of high-fire-risk suburban listings had price cuts compared with 18.8% of low-fire-risk listings. Two pandemic hotspots for relocating buyers, Boise ID and Sacramento CA, also face substantial wildfire risk and were among the top five metros where sellers cut their asking prices in April.
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Thanks to Redfin.
