2020 brings a surge in buyers searching for investment properties

2020 brings a surge in buyers searching for investment properties

2020 brings a surge in buyers searching for investment properties
Many investors in the U.S. are capitalizing on the unique circumstances in home-life and travel that 2020 has brought. More Americans are seeking second homes that can be rented out to generate a supplemental income. As a result, demand for both rental properties and vacation homes with rental potential is stronger than it has been in years.

According to online real estate site Redfin, demand for second homes in October was double what it was during the same month last year. Many investors are searching for properties in vacation destinations that can be used as short-term rentals on platforms like Airbnb. The short-term rental market has surged in 2020 as travelers with limited options prefer the solitude of a private rental rather than a bustling hotel when on vacation.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.