Sales of vacation homes in October jumped 100 percent year-over-year, the fourth triple-digit increase in the last five months, according to a report from Redfin.
Redfin said the increase in sales of vacation homes in October outpaced the 50 percent increase in demand for primary homes.
Redfin economist Taylor Marr said 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.
“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 in a release. “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.”
Marr said 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.
According to the report, 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, Palm Springs, the Jersey Shore, and Bend, Ore.
“The home-tour rate in Lake Geneva has doubled—people from the city can’t travel for vacation so they’re looking for second homes,” Melissa Killham, a Redfin real estate agent in Wisconsin, said. “The Lake Geneva 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.”
Redfin said home values have been climbing in seasonal towns across the U.S. The median sale price in seasonal towns grew 21 percent year-over-year in October to $420,000, outpacing the 14 percent growth in non-seasonal towns.
“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.”