This article appeared in the Charlottesville Area Association of Realtors Real Estate Weekly on 1/13/2021.

Neil Young had it right. Getting back to the country has become a whole lot more appealing in 2020 and it looks like that attraction will continue for a while. Chickens, self-sufficiency, and plain old elbow room seem to be behind some of this rural growth spurt.

As Covid continues to be front and center in our lives, this movement back to rural living is likely to gain even more traction. The change in how and where many people work is continuing through 2021. Google isn’t even going to try and bring workers back before September; and then, only two or three days per week.

With high-speed internet expanding into more rural areas, lots of people are taking a new look at a rural setting and how it might improve their quality of life.

The Appeal of Rural Life

According to Sharon Duke, REALTOR® with William A. Cooke, LLC, “There is a huge move toward land. Buyers are looking for more room to garden, have chickens, and generally have a bit more space between them and their neighbors. They still want to be near a major highway to get where they need to go in a hurry. And access to high-speed internet is critical. Fortunately, the options for internet are increasing throughout Central Virginia.”

Tim Merrick, Managing Broker of Wintergreen Real Estate, says, “There are a couple of things spurring this trend towards country living. Covid has had a huge influence in causing homeowners to rethink in how crowded an environment they want to live. Covid has also created a paradigm shift in how and where many people work. A lot of office workers have not been in their offices since March and are in no hurry to go back. Now they can make lifestyle their first priority rather than compromising by trying to limit their commute.”

This swing towards rural life includes every age range, from baby boomers to millennials. And it includes homeowners living year-round, those buying second homes, and investors.

The Numbers

Statewide, the Virginia Association of REALTORS® shows the strongest demand is for larger homes in smaller suburban and rural markets. That data holds true in Central Virginia.

The CAAR Home Sales Report for the 3^rd quarter of 2020 showed an increase in home sales in rural counties. Add in the preliminary data for the fourth quarter and it’s a clear trend. While Charlottesville and even Albemarle County home sales are flat or decreasing when compared to the prior year third quarter, Fluvanna and Louisa Counties both saw double digit increases.

But those jumps pale in comparison to Nelson County, where the year-over-year increase in home sales hit 50% for the third quarter and nearly hit it again for the fourth quarter of 2020. This moves Nelson County into hot market territory.

Nelson County

Just like the other rural counties in Central Virginia, Nelson County checks all the boxes. It has beautiful vistas, easy access to nearby urban centers, room to spread out, expanding high-speed internet and more.

But what Nelson County doesn’t have might be even more important. Gone is the threat of the Atlantic Coast Pipeline slicing 27 miles through its center. After an historic six-year battle, the pipeline was canceled last summer, thanks in large part to The Friends of Nelson County. Those 27 miles of real estate have been liberated. And it’s not just the land directly on the route that was tainted by the pipeline. Anything close to the proposed route scared away potential buyers. Now that the pipeline is no more, it’s like the floodgates are open.

Julie Bendle, REALTOR® with Mountain Area Realty, says, “The cancellation of the pipeline has been an absolute boon for this area, especially for Wintergreen. Properties anywhere near the proposed route have been held hostage by the pipeline for years.”

Bendle argues that Nelson County is one of the most beautiful places on Earth. “You have options here. Some people come to live somewhat off the grid and be self-sufficient. Others want to just get outside and breathe.” Aside from the natural beauty inherent to the Blue Ridge, Nelson Route 151 is nick-named Virginia’s Weekend Address. The craft breweries, distilleries, wineries, and other agritourism attractions bring out locals and tourists alike for mostly outdoor merriment.

Proximity to major highways and urban centers makes it easy to have the best of both worlds. You can live in the country and still have quick access to city life’s amenities when you want them.

“We have lots of people moving from Washington, Richmond, and the Hampton Roads areas.” Bendle’s own daughter and son recently moved back to Nelson County, jobs in hand. And they moved from areas known for their spectacular scenery: Montana and Vermont. “Many people that moved here work in Charlottesville, Waynesboro, or Lynchburg. Those are all easy commutes. It’s a beautiful drive in any direction, and there’s only one stoplight!”

Up the Blue Ridge, Wintergreen is its own real estate magnet, drawing year-round and vacation homeowners to Nelson County. “2020 was a good year for sales at Wintergreen,” says Tim Merrick, Managing Broker with Wintergreen Real Estate. “We had 162 single family homes on the mountain sell, with prices ranging from $128,000 to $1.4 million. That doesn’t count the 38 sales at Stony Creek.”

“We are definitely seeing a shift. We have more full-time residents on the mountain. A lot of people are now living in their second homes full time because remote working arrangements have allowed them to make the move now, rather than waiting until retirement.”

The same thing is happening in other rural counties in Central Virginia.

Northern Virginia Transplants

This area has always been a big draw for people from Northern Virginia.

“Anyplace that has a rural feel to it within an hour or two of DC is popping,” says Patti Dixon Lillard, REALTOR® with Montague, Miller & Co. “Look at Madison County. This has always been a big retirement area. Mid-career folks might buy a second home in Madison County and come down on weekends. Now it’s the reverse. They’re mostly staying here and going up to Northern Virginia only when they need to.”

The rural life doesn’t necessarily mean isolation. There aren’t many high-density neighborhoods, but with breweries, wineries, food trucks, and music events scattered throughout the area, a social life is easy to come by. Particularly since there is such an outdoors focus.

Vicki Wilson, Broker with Monticello Country Realtors, echoes Lillard. “Northern Virginia and New England are huge feeder systems for our market in Fluvanna County. It had been primarily for second homes and then eventually retirement. Now we are seeing buyers of all ages look a whole lot more seriously at moving from cities to rural areas. And typically, what they are looking for is country living with city conveniences. Places like Lake Monticello or near Zion Crossroads.”

Get Help

The biggest barrier to moving to the country may be lack of inventory. This leads to quick sales at or near the sellers’ asking price.

Lillard recently listed a log cabin near Madison. Within three days it sold at $15,000 above the asking price. “If you miss it, you miss it. In most cases, offers are competitive and over the asking price. In Madison County, everything less than $400,000 is going fast with multiple offers and escalation clauses. And now that is creeping into the higher price ranges as well.”

“Buyers have to come to the table pre-qualified or with cash in hand. We can help them be clear on what is most important to them and what they are willing to offer to get the home they want. And in this competitive market, it helps to have an agent on the look-out for pre-listings.”

As potential buyers continue to outnumber sellers, building becomes more attractive than trying to outbid the competition. Bendle reports “Our inventory of existing homes is as low as it has ever been. Buyers are beginning to get frustrated and many are now deciding to build. As a result, we’re starting to see land prices take-off.”

Whether you’re interested in an existing home or land to build your dream house, having everything in order and using a professional REALTOR® may mean the difference between getting what you want or coming in second place.

Here to Stay

Ask any outdoor recreation store owner and you’ll get the same answer. Bikes, kayaks, campers, RVs and other outdoor equipment have been hot commodities. “The demand for getting outside, whether it is in a neighborhood park or a national park, has been huge,” said Lise Aangeenbrug, Executive Director of the Outdoor Industry Association. “It’s one of the few things you can do socially distanced.”

And that is carrying over to where we choose to live.

This may be more than a temporary swing of the pendulum, from urban to rural and back to urban again.  Lillard sees Covid as having “long-lasting ramifications and creating a permanent shift in everything we do. And that includes where we choose to live, how close we want to be to our neighbors, and how much outdoor space we want for ourselves.”

One of the impacts is that there may continue to be upward pressure on pricing for homes and land in undeveloped areas or for several acre plots of land. How that plays out long-term is yet to be seen. According to John Licata, Managing Partner of Licata Group Real Estate Advisors, “Orange County typically sees appreciation rates around two to four percent. In 2020, it was closer to nine percent.” As large, and even smaller cities begin to feel overly crowded due to this pandemic, buyers may be willing to pay a premium for country living.

A buyer in Orange County moving from Northern Virginia told Licata, “I can work from anywhere in the world. You can be sure that I’m going to choose where I can get the best quality of life for my family.” Then he promptly bought the home for $800,000 cash at the sellers’ asking price.

The healing power of nature may not solve the Covid pandemic, but it can sure make a difference in how you and your family get through it. Whether you live on a couple of acres or a couple of hundred acres, being surrounded by nature has positive impacts on mental and physical health. Factoring improved well-being into the equation makes it worth paying a few extra dollars for a home that delivers, especially with interest rates at nearly historic lows.

It looks like this will be a longer-term situation than we all anticipated last March. It may just be time to consider that move back to the country, back where it all began.