Interest in second homes appears to be slipping after what had been a pandemic-fueled buying frenzy.
A new report from Redfin reveals that demand for those vacation homes declined 21 percent in July, year over year.
It also marked the first time since April 2020 that the growth rate of second-home demand lagged behind primary-home demand, which dropped 4 percent in July year over year, according to Inman.
One potential reason cited for the decline in demand for second homes was the housing market’s overall rise in prices. That has hampered those who may have been looking to add to personal portfolios.
Home prices were up 25 percent in June.
But the market for those properties hasn’t dried up.
“Demand for second homes remains well above pre-pandemic levels, and we can expect the high level of interest in vacation homes to persist in the new era of remote work,” Redfin lead economist Taylor Marr said. He added, “I expect vacation homes to remain popular as more homes are built.”[Inman] — Holden Walter-Warner [contactauthor email=”[email protected]” text=”Contact Holden Walter-Warner”