Do you have clients who are ready to take the plunge and buy their second home?
Whether it’s for strictly private use or to rent or a mix of both, chances are they are facing some steep competition. According to a recent Redfin study, the demand for second homes was up 77% from pre-pandemic levels in December, which is typically a slower season for real estate. This has been an ongoing trend since the beginning of the pandemic, when more employees were able to telework and had the opportunity to work from a more serene or relaxing atmosphere, if they preferred.
As the pandemic has continued, more consumers are taking advantage of record low mortgage rates to invest in a second property. 2021 saw huge gains in the field in January, demand was up 92% from pre-pandemic levels and in November, it was up 80%.
“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,” said Daryl Fairweather, Redfin’s chief economist.
The National Association of Home Builders estimates that about 5.4% of total housing population in the U.S. is second homes. The third quarter of 2021 saw an increase of permits for single-family homes in traditional second home markets, it was up 36.1% year over year, compared to just 23.2% in non-second home markets, the organization found.
The Poconos were recently named one of the most affordable markets to purchase a second home for the winter.