Vacation home hunters are poised to face less competition this spring buying season as the number of locks on second homes dwindles.
According to a new report from Redfin, the number of people locking in mortgages for second homes remained close to a 7-year low in March. Locks for these buyers are down by 52% from February 2020, before the pandemic housing boom, and 49% YOY.
In comparison, primary loan locks are only down 13% from pre-pandemic levels, and 29% YOY.
Locks for second homes peaked at 89% in August 2020 as wealthy Americans took advantage of historically low rates and remote work opportunities.
Now, second-home buyers are deterred by high costs and lifestyle changes. Remote work is gradually fading…
Second-home destinations saw YOY price surges in April, with four of the five most popular areas seeing more than 25% growth, Redin reported. While average rental prices increased 10% in areas not considered second-home destinations by Redfin, prices rose by 17.1% in vacation hotspots to $1,893. Redfin found a similar trend in the for-sale market, with the typical home in second-home markets selling for $516,423 in April, up 19.9% YOY and a new record. Prices in non-second-home markets increased by 14.8%. Phoenix, Cape Coral, FL, Naples, FL, Myrtle Beach, SC, and Las Vegas– the top five destinations for second homes– saw significant increases in both rental and home-sale prices. All but Myrtle Beach experienced rent growth above 25% YOY, and…
Second-home demand fell for a second straight month as rising rates and increased fees deter buyers, Redfin reported. Mortgage-rate locks for second homes dropped to their lowest level since May 2020 in March, though still remained 13% above pre-pandemic levels. “The pandemic-driven surge in sales of vacation homes is coming to an end as mortgage rates rise at their fastest pace in history, causing some second-home buyers to back off,” said Redfin Deputy Chief Economist Taylor Marr. “When rates and prices shoot up so much that a vacation home starts to look more like a burden than a good investment and a fun place to bring your family on the weekends, a lot of prospective buyers have second thoughts.” A…
Good Morning! Today is Tuesday, March 15. U.S. tech stocks and oil prices fell Monday as investors assessed new Covid-19 outbreaks in China. The police arrested a suspect in a series of shootings of homeless men in New York City and Washington, DC. Idaho passed an abortion bill similar to the one in Texas. The Mortgage Note Reports Funding Awarded To Help The Homeless: The U.S. Department of Housing and Urban Development has announced over $2.6 billion to fund roughly 7,000 local homeless housing and service programs throughout the country. CoreLogic: Single-family rents increased by 12.6% YOY in January to reach another historic high, with Miami seeing 40% growth YOY. Vacation Demand: Demand for vacation homes has cooled down after…
Demand for vacation homes has cooled down after skyrocketing to near-record levels in January, Redfin reported. February saw second home demand reach its lowest level since May 2020 as mortgage rates continued climbing, only 35% above pre-pandemic levels. Rates declined for a few weeks due to uncertainty surrounding Russia’s invasion of Ukraine, but started inching up again last week, reaching 3.85%. While demand is still significantly elevated from two years ago, it’s nothing compared to January’s 87% increase. February was also the first month where primary residence demand beat out vacation home demand since the pandemic began, though only by 1%. “Rising mortgage rates, combined with rising home prices, are hitting the second-home market much harder than the primary-home market,”…
In January, second-home demand was up 87% from before the pandemic, the highest levels in a year and almost up to September 2020’s record 90% gain, Redfin reported. Second-home demand outpaced primary residence demand, which was up 42% from pre-pandemic levels. “Demand for second homes was strong in January as buyers tried to lock in relatively low mortgage payments,” said Redfin Deputy Chief Economist Taylor Marr. “Mortgage rates surpassed 3.5% in January for the first time since March 2020, encouraging buyers who were on the fence about purchasing a vacation home to commit before rates increase further. While I expect demand for second homes to remain higher than it was before the pandemic, mostly because of remote work, it may…
The percentage of second home mortgage rate locks reached its highest recorded level in Q1 2021, dipping slightly in Q2 and Q3 before jumping back up at year-end, according to Pacaso’s Second Home Market report. Second home locks made up 5.7% of all mortgage rate locks in Q1 2021, a record high. They dropped slightly in Q2 and Q3, to 4.6% and 4.5%, respectively, but jumped back up to 5% in Q4 2021. “In April of last year, people stopped to take a beat, to see how things would shake out in what everyone hoped would be a post-pandemic reality,” said Pacaso CEO Austin Allison. “For some, that also meant going back to the office, and perhaps not coincidentally, second…
Good Morning! Today is Thursday, January 6. It’s the anniversary of the January 6 riot, and President Biden will speak today on steps to strengthen democracy in the US. A Philadelphia fire left at least thirteen dead and two hospitalized. The CDC recommended Pfizer boosters for children aged twelve and up. And in mortgage and housing news… Check Out The Photos!: These are the most expensive homes in 2022’s hottest housing markets. Second Home Demand Stays High: December demand for vacation homes topped pre-pandemic levels by 77% as affluent Americans continue to take advantage of remote work and low-interest rates. But it’s so hard to get into the game, some people are comparing it to finding their way into an…
