15
INTEREST IN
INVESTMENT AND
SECOND HOMES UP
IN DECEMBER
According to a new report from Redfin,
the demand for vacation homes and
investment properties was up 77% from pre-
pandemic levels in December, slightly below
the 80% increase in November, and the record
high 92% gain in January, but up significantly
from the significant 2021 drop in August.
"e wealthy are still flush with cash
and have access to cheap debt, which is why
second home purchases remain far above
pre-pandemic levels," Redfin Chief Economist
Daryl Fairweather said.
Vast interest in second homes started
to surge in mid-2020 as many affluent
Americans traveled to vacation destinations,
taking advantage of low mortgage rates
and remote work. e minor slowdown in
mortgage-rate locks from November to
December is likely an effect of the holiday
season rather than an overall decrease in
demand.
Redfin's report is based on an analysis
of mortgage-rate lock data from real estate
analytics firm Optimal Blue. Roughly 80%
of mortgage-rate locks result in actual home
purchases.
With an unpredictable housing market
and the ongoing pandemic, vacation homes
remain a highly coveted sanctuary as many
Americans are spending more time at home
even if they're away on a holiday.
"While interest in second homes is
stabilizing after the big boom in the second
half of 2020 and the beginning of 2021, I
expect demand to remain high well into this
year. Remote work isn't going anywhere,
and mortgage rates are still quite low,"
Fairweather said.
Journal
