Demand for vacation homes fell for the third month in a row, according to Redfin’s latest report…(Redfin)
- Y-O-Y: Demand for vacation homes was down 19.3% when compared to August 2020.
- M-O-M: Demand slightly increased from July when year-over-year demand was down 21%
NOTE: Demand for primary homes also fell, slipping 1% year over year for the second straight month.
Despite a drop in demand, interest in second homes is above pre-pandemic levels…
Sales of vacation homes made up 6.7% of overall existing-home sales in the first four months of this year, up from 5% in 2019, according to a recent report from the National Association of Realtors.
Redfin Lead Economist Taylor Marr, said in a statement that the housing market is returning to normal…
- “The pandemic isn’t over, but the desire to escape isn’t as intense as it was before…The housing market as a whole is still booming, just not as strongly as it was in the second half of 2020. Homebuyer competition, migration and home-sales growth have all slowed.”
REMEMBER: Demand for vacation homes swelled as much as 172% in April 2021.
DON’T FORGET: The FHFA last week suspended the 7% cap on second homes which should open more lenders to offer competitive rates for second homes. Have to wonder if that could be enough to reverse these current trends?
