Demand for vacation homes sits at its highest level in a year.
Everyone Still Wants a Vacation Home
At two years and counting into the pandemic, buyers who can afford to still want to buy a vacation home. According to Redfin, second-home demand sits +87% higher now than pre-pandemic levels.
Reminder it’s the New Year. You promised yourself you would become a HARRIS Coaching client. You are done wasting time and want to follow a proven path in 2022. Now, while you are here make the next natural step and join the 1000s of other agents as a HARRIS Real Estate University coaching member. No more waiting or procrastinating. Join now. Here is the quick and simple enrollment.—-> YES, Enroll Me Now In Premier Coaching. I WiLL make 2022 my best year ever!
Vacation home demand jumped to the highest level it’s been in a year, just below the 90% record gain of September 2020, during January 2022.
Compare this gain of +87% from pre-pandemic levels for vacation homes to a gain of just +42% from pre-pandemic levels for primary homes.
Why Such Strong Demand for Vacation Homes in January 2022?
“Demand for second homes was strong in January as buyers tried to lock in relatively low mortgage payments,” said Taylor Marr, Deputy Chief Economist with Redfin.
Marr continued. “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 fall slightly in the coming year as mortgage rates continue to go up and fees for second home loans increase.”
Seasonal Towns Benefitting Most from Second Home Splurge
Median home prices in seasonal home markets ($501,000) have jumped +20% y/y (with 18 consecutive months of double-digit price growth) compared to +13% in non-seasonal towns ($408,000). (Redfin considers a seasonal market to be one with more than 30% of its housing used for recreational or seasonal purposes, according to 2019 Census data.)
Likewise, strong demand for vacation homes in seasonal towns is depleting the number of for-sale homes. During Q4 2021, inventory in seasonal towns was down -29% y/y while inventory in non-seasonal towns was down -16%.
An important question for you. 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!
4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
Thanks to Redfin.