Trending...
- Omnitronics launches Ecosystem Health Dashboard to enable proactive monitoring across dispatch environments
- UK Financial Ltd Verifies Maya Preferred PRA Circulating Supply, Proving Its Eight-Year Promise of Under 1M Tokens After Chainlink Labs Agreement
- Tacoma: Applications Now Being Accepted for three Positions on the Urban Design Board
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
- Spokane: Incorrect Info Regarding Downgraded Evacuation Status on Popular App
- FDA Clears Major Regulatory Hurdle as Preservative-Free Ketamine Program Moves Within Reach of Commercialization: NRx Pharmaceuticals: (NAS DAQ: NRXP)
- Autonomous Robotics Platform Expansion as Public Market Debut is Very Close: MBody AI Corp. (N A S D A Q: MBAI)
- Tacoma Voters Approve Connect Tacoma: Safe Streets and Sidewalks Levy (Proposition 1)
- Loud! OOH calls for prize draw advertising standards as £1.3bn category moves outdoors
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
- Black Ribbon Productions Launches With Fearless 2026 Horror Slate
- Spokane: Disaster Assistance Center will open Aug 6 at Shadle Park High School
- Actor Dominic Pace Returns to Television and Film
- Avenue Dental Care North Spokane Offers Free Emergency Care to Firefighters
- Opteamix welcomes Girish Ramachandra to its leadership team as Senior Vice President of Client Services
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
- Premier Expands Presence with New Bellevue Flexible Workspace Location
- Haven Treatment Center In-Network with MODA Health, Expanding Access to Behavioral Health
- Cellofest Brings Free Cello Concerts and Community Events to Bethany Beach August 5–16
- Blue Sky Capital Strategies, LLC awarded Leasing and Financial Services agreement with Premier Inc
- Michael M. Thomas Expands Executive Leadership Across Central India Outreach and Royal Trinity School
- Northeast Airlines and Travel, Inc. Initiates FAA Part 121 Certification for Boeing 737-800 Freighter Cargo Operations
- Walker's Realty and North Jersey Properties Introduce Extraordinary Luxury Estate for Rent in West Orange, New Jersey
- Extreme Heat Strains Home Appliances: Appliance EMT Offers "Summer Rescue" Relief
- Independent West Texas Metal Multi-Instrumentalist & Producer. "MAD CHAD™" Russell Surpasses 1.9 Million Project Interactions Via DFGS Productions
- No Download Needed: Goosechase Adds Browser Play to Every Experience
- iCustoms launches iWarehouse, an AI bonded warehouse platform for customs and excise storage
- Spokane: City Council Members Commends Unified Wildfire Response
- National Night Out in Spokane Cancelled Due to Wildfire Conditions
- Haven Treatment Center Achieves IMD Certification, Expanding Access to Residential Care
- U.S.-Arab Trade Reaches $121.7 Billion, But the Stakes Are Rising
- HER Patio Productions celebrates one-year Anniversary of "Say Grace"
- Working Musicians Academy Partners with Black Dog Music Partners to Give Musicians Independent, Income-Producing Careers
- Spokane: Community Resources Available to Those Impacted by Fires
- Spokane Police Urge Public to Stay Out of Fire Evacuation Areas
- Spokane launches wildfire relief fund