The rise in demand for second homes is more than twice the increase for primary homes, with the number of buyers who locked in mortgage rates for primary homes rising 78% year over year in April. That's a record jump, too, but should also be taken in context, as demand for primary homes dropped last April due to the pandemic.
The data in Redfin's report is based on the company's analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue. Demand for vacation homes remains elevated as wealthy Americans continue to have the freedom to work remotely and earn money from robust stock portfolios and rising home values. Even as some offices start to reopen, many Americans plan to work remotely for the long term, at least part of the time.
"The combination of the wealthy becoming wealthier, remote work turning into the new normal and low mortgage rates is creating an ideal environment for affluent Americans to buy vacation homes," said Redfin Chief Economist
The elevated demand for second homes in the pandemic era is one sign of economic inequality in the
Home prices are up 27% year over year in seasonal towns
Home prices in seasonal towns, where second homes are often located, rose 27% year over year in April to
Price growth for homes in seasonal towns started recovering last summer, and April marks the 10th straight month of 10%-plus year-over-year growth.
To read the full report, including charts with metro-level data, please visit: https://www.redfin.com/news/second-home-demand-doubles
Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we've saved customers nearly
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
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