Increase in Vacation Home Purchases

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According to a recent MReport, an increase in people working from home has led to an increase in purchasing second homes. The article highlights findings from the National Association of Realtors 2021 Vacation Home Counties Report. The report states that from the second half of 2020 to April 2021, there was a significant spike in the interest of vacation homes. Vacation home sales rose by 16.4% during 2020. NAR’s Chief Economist, Lawrence Yun, stated “Vacation homes are a hot commodity at the moment. With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers”. The report also found that median existing-home sale prices in vacation counties grew faster than counties in the rest of the country. NAR considers a county as a vacation home county if the vacant housing for seasonal use accounted for at least 20% of the housing stock. There are roughly 323 of these counties in the U.S. Homes within these counties sold quicker compared to pre-pandemic by 13 days. The median number of people that moved into vacation home counties increased from 78,114 in 2019 to 98,279 in 2020.

WHAT ELSE DID THE REPORT FIND?

Having the ability to work remotely was the main reason for the increase in vacation homes. Yun also commented, “The enduring opportunity for remote work will continue to raise the already high demand for property in these counties, particularly in those counties with reliable broadband internet service”. According to the report, the top 10 counties for vacation homes are Lee County, Oscoda County, Swain County, Collier County, Dukes County, Alleghany County, Garrett County, Barnstable County, Alcona County, and Macon County. Due to low inventory, homebuyers are utilizing certain tactics to close the deal. These tactics include: all-cash offers, an escalation clause, submission before the offer review date, a higher down payment, or more earnest money when reviewing offers.

Click here to read the full MReport and learn more!
Click here to read the full NAR report and learn more!

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