Trending...
- Spokane: SPD Arrest Level III Registered Sex Offender for Failure to Register - 176
- Phinge Exposes Massive AI Security Risks, Claiming Its Patented Hardware-Verified Architecture Is The Only Safeguard Against Surveillance Capitalism
- SPD Detectives Investigating Suspicious Deaths in Northeast Spokane
SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — Demand for vacation homes has fallen below the pre-pandemic baseline for the first time in two years, with mortgage-rate locks for second homes down 4% from before the pandemic in May, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That's down from a revised rate of 3% above pre-pandemic levels a month earlier, and 70% above pre-pandemic levels a year earlier.
Demand for second homes is declining due to high home prices, mortgage rates that have rapidly risen to nearly 6% and a slumping stock market–factors that are also cooling the rest of the housing market. Another deterrent to second-home buyers is the fact that the federal government increased loan fees for second homes in April, adding roughly $13,500 to the cost of purchasing a $400,000 home.
"Skyrocketing monthly payments, along with higher loan fees, have priced many second-home buyers out of the market," said Redfin Deputy Chief Economist Taylor Marr. "Many would-be second-home buyers are also deterred by turmoil in the stock markets, high inflation and recession fears, and they can be quicker to pull back from the market because vacation homes aren't a necessity the way primary homes are. The cooldown in the second-home market is likely to continue as long as mortgage rates are elevated and the stock market is slumping."
More on Washingtoner
The drop in vacation-home demand marks a drastic change from the second half of 2020 and 2021, when mortgage-rate locks for second homes skyrocketed due to record-low mortgage rates and the flexibility to work from anywhere thanks to remote work. Demand peaked in March 2021, when it was about 90% above pre-pandemic levels.
Interest in vacation homes started declining sharply in February as mortgage rates began their ascent. The average 30-year fixed mortgage rate reached 5.81% in the week ending June 23.
To read the full report, including charts and methodology, please visit: https://www.redfin.com/news/second-home-demand-falls-may-2022.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
More on Washingtoner
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
Contacts
Redfin Journalist Services:
Ally Braun, 206-588-6863
press@redfin.com
Demand for second homes is declining due to high home prices, mortgage rates that have rapidly risen to nearly 6% and a slumping stock market–factors that are also cooling the rest of the housing market. Another deterrent to second-home buyers is the fact that the federal government increased loan fees for second homes in April, adding roughly $13,500 to the cost of purchasing a $400,000 home.
"Skyrocketing monthly payments, along with higher loan fees, have priced many second-home buyers out of the market," said Redfin Deputy Chief Economist Taylor Marr. "Many would-be second-home buyers are also deterred by turmoil in the stock markets, high inflation and recession fears, and they can be quicker to pull back from the market because vacation homes aren't a necessity the way primary homes are. The cooldown in the second-home market is likely to continue as long as mortgage rates are elevated and the stock market is slumping."
More on Washingtoner
- Why U.S. Enterprises Are Replacing Fragmented eCommerce Stacks with AI Driven Platform Like Diginyze
- Flexible Plan Investments Names Carl Resnick President
- Tacoma: Statement by Council Member John Hines Celebrating Community Engagement on North Union Avenue Greenway Historic Designation
- Visit Spokane, City of Spokane Partner to Attract Film Production and Drive Economic Development
- Spokane: Public Service Announcement
The drop in vacation-home demand marks a drastic change from the second half of 2020 and 2021, when mortgage-rate locks for second homes skyrocketed due to record-low mortgage rates and the flexibility to work from anywhere thanks to remote work. Demand peaked in March 2021, when it was about 90% above pre-pandemic levels.
Interest in vacation homes started declining sharply in February as mortgage rates began their ascent. The average 30-year fixed mortgage rate reached 5.81% in the week ending June 23.
To read the full report, including charts and methodology, please visit: https://www.redfin.com/news/second-home-demand-falls-may-2022.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
More on Washingtoner
- Tacoma Police Department Launches Tacoma Public Safety Partnership
- Paula Josephine Sadler Releases "Imagine" on 24th Anniversary of Sobriety
- Ritz-Carlton Residences Houston Generates Strong Early New Construction Sales at 2120 Post Oak Blvd
- No Sugar Baker Continues National Growth with Seattle Market Expansion Across Washington, Idaho, and Alaska
- The Refugee Archive Launches Campaign to Preserve 21 Female-Headed Household Oral Histories in Rebel-Controlled Goma
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
Contacts
Redfin Journalist Services:
Ally Braun, 206-588-6863
press@redfin.com
0 Comments
Latest on Washingtoner
- DuraFast Label Company Launches Seiko SLP850 2" Thermal Printer with Free Label Promotion
- Scientific Figure Releases Free Layout Template Libraries for Graphical Abstracts and Research Posters
- Permian Museum announces the addition of an Ancient Alien Artifacts photo gallery
- VISION 2050 Award for Historic Tideflats Subarea Plan Presented by Puget Sound Regional Council at Tacoma City Council Meeting
- The Golden Jazz Fest Shuttle Returns for 2026
- City of Tacoma to Activate New Automated Enforcement Cameras Beginning September 14
- KeysCaribbean Resorts Offer Savings On Vacations Through Aug. 31, Preview Exceptional Select Fall Rates of Less Than $200/Night
- Covington Makers Market Returns Sept. 12 with Local Makers, Artists, Small Businesses & Food Vendors
- Fit Body Boot Camp Launches Nationwide 'Fit Body Forever' Workshops to Help Adults 60+ Rebuild Strength and Prevent Falls
- Canadian Aerospace Defence Talent Expo (CADTE) Launches National TalentThread Initiative to Strengthen Canada's Future Workforce
- 5.6 Million EUR in Q1 Project Awards for Integrated IoT Solutions / Data Analytics Subsidiary of Smart City Developer: Affluence (Stock Symbol: AFFU)
- Merger Advancement For Embodied AI Co in Robotic Systems Serving High Value Hospitality, Gaming & Real Estate Sectors: MBody AI Corp. (NAS DAQ: MBAI)
- Hollywood In Pixels Announces Honorees for The 9th Silver PIXel Awards
- New Research Finds a Good Deal Is All It Takes to Get Americans Booking a Last-Minute Vacation — and Most Already Have One on Their Mind
- GitKraken Introduces GitLens 19, Bringing Human and AI Workflows Together in One Workbench
- LĪNA Universal Balm Nominated for "Best Clean Skincare Product" at CertClean Beauty Awards
- Spokane: SPD Arrest Level III Registered Sex Offender for Failure to Register
- SPD Detectives Investigating Suspicious Deaths in Northeast Spokane
- Bronze Stevie Award Recognizes Satyadhar Joshi for AI Research and Public Policy Engagement
- synseer Nominated for Best Startup in 2026 Prix Galien USA Awards Following Record Breaking Applicant Pool