As rates continue to rise demand for second homes is falling, according to Redfin’s latest report…(Redfin)
- Second-home demand continues to fall with a 16% drop in March after a 28% drop in February.
- Despite the steep falls, second-home demand is still 13% above pre-pandemic levels.
Taylor Marr, Redfin Deputy Chief Economist, said second-home investment lose their luster as prices and rates climb…
- “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…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.“
NOTE: Second home demand peaked at 88% above pre-pandemic levels in March 2021.
