The demand for a vacation home surged in the first year of the pandemic – skyrocketing 172 percent – as Americans sought an escape during a time when most public vacation destinations were shuttered. As COVID-19 restrictions started winding down, this demand saw a sharp decline. According to data from Redfin, demand for vacation homes in August fell 19.3 percent on a year-over-year basis. This is the third consecutive month of declines.
Experts had anticipated a drop in the demand for second homes as schools and businesses opened back up.
The National Association of Realtors obtains this data by analyzing the disclosures home buyers must make on their mortgage applications – whether the property is a primary home, secondary or investment.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 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.
