Demand For Second Homes Is Way Down From Last Year’s Boom

Source: Redfin — 

Demand for vacation homes is way down after last year’s pandemic-driven boom. 

Mortgage-rate locks for second homes were up 9.1% from pre-pandemic levels in April,  essentially unchanged from a revised rate of 8.7% in March and down from 15% in February. That’s a drastic dip from the second half of 2020 and 2021, when demand soared as high as 88% above pre-pandemic levels. 

The end of the pandemic-driven second-home boom comes as sky-high home prices and fast-rising mortgage rates price many buyers out of the market. Additionally, the federal government hiked loan fees for second homes starting on April 1, adding roughly $13,500 to the cost of purchasing a $400,000 home for the typical buyer.