Pandemic-Driven Demand for 2nd Homes Soars
According to new data from Redfin, buyers who locked in mortgage rates for second home purchases shot up by a record 128% year-over-year in March – marking the 10th straight month of 80%-plus annual growth. However, they caution that this year-over-year increase should be taken in the proper context considering demand was relatively weak in March, 2020 at the onset of the Coronavirus pandemic. Redfin says that the intense demand for vacation homes is a symbol of an ongoing uneven economic recovery in the U.S., with some Americans being able to afford second homes and many others unable to afford their first. Indeed…
“…Home prices just keep going up. That’s a good thing for Americans who already own one home because they can take advantage of their increased equity to buy other assets, which in some cases includes another home. But it’s bad for lower- and middle-class families, particularly those who are renters, because the barrier to homeownership is getting higher and higher.” Said Redfin Chief Economist Daryl Fairweather. “
Click here to read the full story at Redfin.com.
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