Demand for vacation homes was up 77 percent from pre-pandemic levels in December, according to Redfin. While down from the 80 percent increase in November, cooler weather and a new COVID variant seems to have reignited interest following the annual low in August.
“The wealthy are still flush with cash and have access to cheap debt, which is why second-home purchases remain far above pre-pandemic levels,” said Redfin Chief Economist Daryl Fairweather. “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.”
The numbers stem from an analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue. 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 percent of mortgage-rate locks result in actual home purchases.