85 85
INVESTMENT GOVERNMENT PROPERTY PRESERVATION
Journal
SECOND-HOME
SALES UP 200%
DURING PANDEMIC
While the pandemic caused many people
to reassess their living situations as the virus
began ravaging the country during the first
quarter of 2020, many made hard decisions,
some went the complete opposite way by
doubling down and purchasing a second home.
According to Pacaso, a technology-enabled
real estate marketplace, the trend of people
buying second homes has been so popular that
it has increased 235% since the first quarter of
2020. is type of transaction increased 25%
alone during the second quarter of 2022.
"Overall, luxury real estate exceeded
expectations and outperformed the rest of
the second home category and the overall
real estate market in Q2 2022," said Austin
Allison, Pacaso Co-Founder and CEO.
"Despite a rising interest rate environment and
growing concerns of a recession, it is clear that
demand for this type of asset remains strong."
According to second home mortgage rate
lock data analyzed by Pacaso's research team,
sales of luxury second homes and investment
properties—which are defined as homes sold
for $1 million or more that are designated for
seasonal and/or recreational use—increased
nearly 25% year over year during the second
quarter of 2022 and approximately 235%
compared to Q1 2020, prior to the pandemic
intensifying in the United States.
"Affluent consumers tend to be more
insulated from the impacts of an economic
downturn," Allison continued. "Some
consumers will look to real estate as a more
stable place to park their money during times
of increased market volatility. Although they
may trim their budgets, this group is less
likely to completely drop out of the market.
As a result, demand for luxury real estate
remains strong, but the acceleration of home
price appreciation for this category will likely
continue to slow as we saw during Q2 2022."
