{"id":384946,"date":"2020-11-19T08:04:08","date_gmt":"2020-11-19T13:04:08","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=384946"},"modified":"2020-11-19T08:04:08","modified_gmt":"2020-11-19T13:04:08","slug":"demand-for-second-homes-surges-100-year-over-year-in-october","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/demand-for-second-homes-surges-100-year-over-year-in-october\/","title":{"rendered":"Demand for Second Homes Surges 100% Year Over Year in October"},"content":{"rendered":"
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The number of people locking in mortgage rates for second homes–even as millions of families suffer and unemployment skyrockets–is further evidence of a K-shaped recovery<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n SEATTLE<\/span>, Nov. 19, 2020<\/span> \/PRNewswire\/ — (NASDAQ: RDFN) \u2014 Sales of vacation homes are soaring, even as millions of Americans grapple with financial devastation triggered by the coronavirus pandemic. In October, demand for second homes skyrocketed 100% from a year earlier\u2014the fourth triple-digit increase in the last five months, according to a new report<\/a><\/u>\u00a0from Redfin (redfin.com<\/a><\/u>), the technology-powered real estate brokerage. That outpaced the 50% increase in demand for primary homes.<\/p>\n

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For its report, Redfin analyzed mortgage-rate lock data from real estate analytics firm Optimal Blue<\/a><\/u>. A mortgage-rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time, offering protection against future interest-rate hikes. Homebuyers must specify whether they are applying to secure a mortgage rate for a primary home, a second home or an investment property.\u00a0 Roughly 80% of mortgage rate locks result in actual home purchases.<\/p>\n

Home sales are on the rise across the board due to record-low mortgage rates and a wave of relocations during the pandemic, but demand for second homes is particularly strong as affluent Americans work remotely, no longer need to send their kids to school in person and face travel restrictions, explained Redfin lead economist Taylor Marr<\/span>.<\/p>\n

“With mortgage rates at all-time lows and offices shut down across the country, the dream of having a second home outside of the city is becoming a reality for many wealthy Americans,” Marr said. “Unfortunately, at the same time, millions of less-fortunate families are behind on their mortgage or rent payments due to financial hardship brought on by the coronavirus pandemic.”<\/p>\n

Some of the second homes purchased this year will ultimately turn into primary homes, as it’s not uncommon for a buyer to close a deal on a second home before putting their current house on the market, Marr added.<\/p>\n

As second-home purchases have soared during the pandemic, resort towns across the U.S. have attracted more homebuyers. A recent Redfin report<\/a><\/u>\u00a0found that eight of the 10 U.S. counties that have heated up the most over the past year are home to popular vacation spots, including Lake Tahoe, Cape Cod<\/span>, Palm Springs, the Jersey Shore, and Bend, OR.<\/span><\/p>\n

\n Melissa Killham<\/span>, a Redfin real estate agent in Wisconsin<\/span>, said that she’s seen demand surge in Lake Geneva\u2014a popular resort town about an hour southwest of Milwaukee.\u00a0<\/p>\n

“The home-tour rate in Lake Geneva<\/span> has doubled\u2014people from the city can’t travel for vacation so they’re looking for second homes,” she said. “The Lake Geneva<\/span> school district is also still offering in-person learning, so a lot of families are buying second homes in the area so they can work remotely and send their kids to school.”<\/p>\n

Home values have been climbing in seasonal towns across the U.S. The median sale price in seasonal towns grew 21% year over year in October to $420,000<\/span>, outpacing the 14% growth in non-seasonal towns. Redfin defines a seasonal town as a town where more than 30% of housing stock is used for seasonal, recreational or occasional purposes.<\/p>\n

“Even when offices reopen, folks will be able to spend more time than ever before in their second homes because many employers will continue to offer flexible remote-work policies,” Marr said.”With workers still commuting in one or two days a week, resort towns that are near major cities will likely continue to heat up.”<\/p>\n

To view the full report, please visit: https:\/\/www.redfin.com\/news\/second-home-purchases-soar-coronavirus-pandemic<\/a><\/u>\u00a0\u00a0<\/p>\n

\n About Redfin\u00a0<\/b>\n <\/p>\n

Redfin (www.redfin.com<\/a>) is a technology-powered residential real estate company, redefining real estate in the consumer’s favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country’s #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate<\/a><\/u>. We represent people buying and selling homes in over 90 markets in the United States<\/span> and Canada<\/span>. Since our launch in 2006, we have saved our customers over $800 million<\/span> and we’ve helped them buy or sell more than 235,000 homes worth more than $115 billion<\/span>.<\/p>\n

For more information or to contact a local Redfin real estate agent, visit www.redfin.com<\/a><\/u>. To learn about housing market trends and download data, visit the Redfin Data Center<\/a><\/u>. To be added to Redfin’s press release distribution list, email press@redfin.com<\/a><\/u>. To view Redfin’s press center, click here<\/a><\/u>.<\/p>\n

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\n \"Cision\" View original content to download multimedia:http:\/\/www.prnewswire.com\/news-releases\/demand-for-second-homes-surges-100-year-over-year-in-october-301176867.html<\/a><\/p>\n

SOURCE Redfin<\/p>\n<\/p><\/div>\n

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The number of people locking in mortgage rates for second homes–even as millions of families suffer and unemployment skyrockets–is further evidence of a K-shaped recovery PR Newswire SEATTLE, Nov. 19, 2020 \/PRNewswire\/ — (NASDAQ: RDFN) \u2014 Sales of vacation homes are soaring, even as millions of Americans grapple with financial devastation triggered by the coronavirus pandemic. In October, demand for second homes skyrocketed 100% from a year earlier\u2014the fourth triple-digit increase in the last five months, according to a new report\u00a0from Redfin (redfin.com), the technology-powered real estate brokerage. That outpaced the 50% increase in demand for primary homes. For its report, Redfin analyzed mortgage-rate lock data from real estate analytics firm Optimal Blue. A mortgage-rate lock is an agreement between … <\/p>\n

Continue reading “Demand for Second Homes Surges 100% Year Over Year in October”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-384946","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nDemand for Second Homes Surges 100% Year Over Year in October - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/demand-for-second-homes-surges-100-year-over-year-in-october\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Demand for Second Homes Surges 100% Year Over Year in October - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"The number of people locking in mortgage rates for second homes–even as millions of families suffer and unemployment skyrockets–is further evidence of a K-shaped recovery PR Newswire SEATTLE, Nov. 19, 2020 \/PRNewswire\/ — (NASDAQ: RDFN) \u2014 Sales of vacation homes are soaring, even as millions of Americans grapple with financial devastation triggered by the coronavirus pandemic. In October, demand for second homes skyrocketed 100% from a year earlier\u2014the fourth triple-digit increase in the last five months, according to a new report\u00a0from Redfin (redfin.com), the technology-powered real estate brokerage. That outpaced the 50% increase in demand for primary homes. For its report, Redfin analyzed mortgage-rate lock data from real estate analytics firm Optimal Blue. 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