Further exhibiting that the COVID economic recovery is hitting communities at very different rates, the number of buyers who locked in mortgage rates for second homes soared 178 percent year-over-year in April, according to new data from Redfin. That large data point is due, in part, to the demand dropping 24 percent in April 2020 as the pandemic took hold of the country.
Still, these numbers mark the 11th straight month of 80 percent-plus growth, and second-home mortgage rate locks are holding steady at more than double pre-pandemic levels.
The report from Redfin also notes that 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 percent in April 2021 compared to April 2020.
“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 Daryl Fairweather. “As long as the economy continues to grow, I don’t foresee demand for second homes slowing down anytime soon.”