Not helping the housing shortage out.
Second home demand more than doubles pre-pandemic levels amid pandemic
Second home demand more than doubles pre-pandemic levels amid pandemic
- The number of buyers who locked in mortgage rates for second homes soared 178% year over year in April, marking the 11th straight month of 80%-plus growth, reports Redfin.
- Affluent Americans working remotely from vacation destinations are driving second home sales.
- The rise demand for second home has more than doubled the increase in primary home, considering how primary home demand slumped to the pandemic last April.
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- Home prices in seasonal towns (where second homes are often located) rose 27% Y/Y in April to $450,000, whereas home prices in non-seasonal towns were up 28% to $419,000.
- The price jump touches a record high, however it is somewhat inflated because price growth was slow at this time last year due to stay-home orders and economic lockdowns related to the pandemic.
- “The combination of the wealthy becoming wealthier, remote work turning into the new normal and low mortgage rates is creating an ideal environment for affluent Americans to buy vacation homes,” said Redfin Chief Economist Daryl Fairweather. “As long as the economy continues to grow, I don’t foresee demand for second homes slowing down anytime soon.”