Buyers Walk Away From Second Homes
Skift Take
New data underscores a 14-month trend of second-home demand remaining at least 30% below pre-pandemic levels, largely due to high housing costs and limited inventory.
Happy hump day! And we continue to discuss the housing market and mortgages.
There was a 47% drop in mortgage-rate locks (a lock-in fixes an interest rate between the offer and the closing) for second homes in the U.S. in August compared to pre-pandemic levels, according to new data from real estate listing site Redfin. The data underscores a 14-month trend of second-home demand remaining at least 30% below pre-pandemic levels, largely due to high housing costs and limited inventory. In February, rate locks for second homes reached a seven-year low, plummeting to 52% below pre-pandemic levels. Year-over-year, demand for second homes has also dipped by 19%, surpassing the 14% decline for primary homes.
The numbers mean people aren’t buying as many investment properties as they were during the post pandemic rush.
What’s worse is that the confidence of U.S. homebuilders is also declining — for the first time in seven months
