Second Homes See Uptick in Interest

The vacation home market is continuing to see a huge increase in buyers, but like in most markets, inventory is limited.

According to a recent report from Redfin, mortgage applications for second homes increased 84% year year-to-year in January, representing eight consecutive months of 80+% year-over-year growth. In comparison, primary home mortgage applications only saw an increase of about 36% year-to-year in January, with a high of 65% year-to-year in September.

Lisa Sanderson, an associate broker in Stroudsburg and member of the Pocono Mountains Association of Realtors®, said there is an influx of cash buyers “who are swooping in to make ridiculous offers on homes here.”

“My last three listings had multiple offers and the sellers ended up getting more than they were asking, all cash, and contingencies, like inspections, waived. It’s wild out here,” she said. “Inventory is extremely low and demand is through the roof. I had one home that we had 27 offers come in within 50 hours of listing it. All this is to say that it is difficult for primary homebuyers to compete with the monied city-folk coming in desperate for space.”

The report also found that home prices in vacation towns saw an increase of 19% year-to-year in December, compared to homes in non-vacation areas, which saw an increase of 13% year-to-year.

Sanderson said that she is mostly seeing buyers from the Philadelphia and New York City areas, who are moving tentatively.

“In speaking to some of my colleagues in these areas this week, they confirm that many of these buyers are not really looking to leave permanently,” said Sanderson. “But we have always had a kind of quasi-second-home market here, as so many commute to the cities for work. So, they either buy a primary home, but stay in their city rental a lot for work, or buy a second home and stay here most every weekend and much of the summer. It’s always been a very gray area; dual citizenship so to speak.”