For its report, Redfin analyzed mortgage-rate lock data from real estate analytics firm Optimal Blue. A mortgage-rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time, offering protection against future interest-rate hikes. Homebuyers must specify whether they are applying to secure a mortgage rate for a primary home, a second home or an investment property. Roughly 80% of mortgage rate locks result in actual home purchases.
Home sales are on the rise across the board due to record-low mortgage rates and a wave of relocations during the pandemic, but demand for second homes is particularly strong as affluent Americans work remotely, no longer need to send their kids to school in person and face travel restrictions, explained Redfin lead economist
"With mortgage rates at all-time lows and offices shut down across the country, the dream of having a second home outside of the city is becoming a reality for many wealthy Americans," Marr said. "Unfortunately, at the same time, millions of less-fortunate families are behind on their mortgage or rent payments due to financial hardship brought on by the coronavirus pandemic."
Some of the second homes purchased this year will ultimately turn into primary homes, as it's not uncommon for a buyer to close a deal on a second home before putting their current house on the market, Marr added.
As second-home purchases have soared during the pandemic, resort towns across the
"The home-tour rate in
Home values have been climbing in seasonal towns across the
"Even when offices reopen, folks will be able to spend more time than ever before in their second homes because many employers will continue to offer flexible remote-work policies," Marr said."With workers still commuting in one or two days a week, resort towns that are near major cities will likely continue to heat up."
To view the full report, please visit: https://www.redfin.com/news/second-home-purchases-soar-coronavirus-pandemic
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in
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
View original content to download multimedia:http://www.prnewswire.com/news-releases/demand-for-second-homes-surges-100-year-over-year-in-october-301176867.html
Redfin Journalist Services, Angela Cherry, 913-638-8249, email@example.com