More buyers seriously considered buying a second home last month and fixed their mortgage rates in preparation for the deal.
As summer creeped into the fall, demand for second houses accelerated again, below the early peaks of the pandemic, but well above historic levels.
According to Redfin’s analysis, demand for villas and second houses in September was 60% higher than pre-pandemic levels. Demand last month was 40% higher than before the pandemic.
“”With the onset of the coronavirus pandemic, vacation homes have skyrocketed in popularity, and many wealthy Americans have chosen to leave urban life behind and work in remote areas, “said Redfin’s report.
Immediately after the first pandemic shock subsided, demand for second homes surged. Interest in these second houses continued to rise in the months that followed, peaking at levels well above double the normal level in March of this year.
Since then, the numbers have fallen a bit, but remain much higher than normal. According to the brokerage firm, part of the slowdown in the second home was likely seasonal as the spring home buying season was nearing its end.
But another possible demand damper that happened around that time was a new rule from Fannie Mae, which effectively made it difficult for borrowers to get loans for higher-risk real estate such as villas and investment real estate. bottom.
Fannie Mae’s announcement came in March, which coincided with peak demand for these homes.
“The market may have responded a bit too much to Fannie Mae’s rules, which explains why demand for second-houses is recovering,” said Taylor Marr, Deputy Chief Economist at Redfin, in a report from the company. I have. ” “Mortgage rates are also rising, which could create a new sense of urgency for villa buyers who want to buy real estate before interest rates rise further.”
A Seattle-based brokerage firm has released its findings based on the number of people who have fixed mortgage rates on properties labeled as Second Houses. According to Redfin, a four-fifth rate lock will lead to a real home purchase.
September sees a new turnaround in demand for second-house
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