Second homes continue to lose their appeal in the post-pandemic era, according to new data from Redfin (NASDAQ:RDFN), with mortgage-rate locks for second homes down 19% year-over-year in August, compared to the 14% decline for primary homes.
When measured against the pre- and post-pandemic timelines, mortgage-rate locks for second homes were down 47% from pre-pandemic levels on a seasonally adjusted basis in August – in comparison, mortgage-rate locks on primary homes were down by 33%.
August is the 14th consecutive month that second-home demand is at least 30% below pre-pandemic levels. Rate locks for second homes hit a seven-year low in February when they declined to 52% below pre-pandemic levels.
Redfin attributed the decline to high prices and loan fees, coupled with a diminishing appeal for rental properties. With many workers are returning to the office, the post-pandemic allure of second homes has dimmed.
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