Demand for second homes dropped 19.3 percent year-over-year in August, the third straight month of declines, according to a Redfin report. Demand for primary homes fell 1 percent year-over-year, the second month of declines.
Redfin noted that while demand for second homes fell much more year-over-year than primary homes, there was a surge in demand for second homes during the pandemic, soaring by as much as 172 percent in April.
While interest in second homes is lower than it was a year ago, it remains above pre-pandemic levels. That interest will likely stay elevated, according to Redfin Lead Economist Taylor Marr, due to the permanent shift to remote work for many. Sales of vacation homes made up 6.7 percent of all existing-home sales in the first four months of this year, up from 5 percent in 2019, according to the National Association of Realtors.
“The pandemic isn’t over, but the desire to escape isn’t as intense as it was before. People are increasingly returning to life as normal, with kids going back to school and cities coming to life again,” Marr said in a release. “The housing market as a whole is still booming, just not as strongly as it was in the second half of 2020. Homebuyer competition, migration and home-sales growth have all slowed.”