Redfin Reports Demand for Second-Home Mortgages Falls to Eight-Year Low
Redfin reports a significant decline in mortgage-rate locks for second homes, dropping 13.1% year-over-year in August 2024 to an eight-year low. This decrease is more than double the 5.2% decline observed for primary homes. Second-home mortgage demand has plummeted 59.2% from pre-pandemic levels, compared to a 31.9% drop for primary homes.
Factors contributing to this trend include:
- High home prices and elevated interest rates
- Increased likelihood of cash purchases by second-home buyers
- Higher costs for second homes and government-imposed loan fee increases
- Return-to-office mandates reducing time spent in vacation homes
- Stagnating rental markets and restrictions on short-term rentals
- Economic uncertainty and recession concerns
This slowdown contrasts sharply with the surge in second-home demand during the pandemic, which peaked at 96.2% above pre-pandemic levels in October 2020.
Redfin segnala un calo significativo nelle richieste di mutui per seconde case, con una diminuzione del 13,1% rispetto all'anno precedente ad agosto 2024, raggiungendo un minimo di otto anni. Questa riduzione è più del doppio rispetto al calo del 5,2% osservato per le case principali. La domanda di mutui per seconde case è precipitata del 59,2% rispetto ai livelli pre-pandemia, rispetto a un calo del 31,9% per le case principali.
I fattori che contribuiscono a questo trend includono:
- Alti prezzi delle case e tassi di interesse elevati
- Aumento della probabilità di acquisti in contante da parte dei compratori di seconde case
- Aumenti dei costi per le seconde case e delle commissioni sui prestiti imposte dal governo
- Mandati di ritorno in ufficio che riducono il tempo trascorso nelle case per le vacanze
- Mercati degli affitti stagnanti e restrizioni sugli affitti a breve termine
- Incertezze economiche e preoccupazioni per la recessione
Questo rallentamento contrasta nettamente con l'impennata della domanda di seconde case durante la pandemia, che ha raggiunto un picco del 96,2% sopra i livelli pre-pandemia nell'ottobre 2020.
Redfin informa sobre una disminución significativa en los bloqueos de tasas hipotecarias para segundas residencias, que cayeron un 13.1% interanual en agosto de 2024, alcanzando un mínimo de ocho años. Esta disminución es más del doble del descenso del 5.2% observado en las viviendas principales. La demanda de hipotecas para segundas residencias ha caído un 59.2% desde los niveles anteriores a la pandemia, en comparación con una caída del 31.9% para las casas principales.
Los factores que contribuyen a esta tendencia incluyen:
- Altos precios de las viviendas y tasas de interés elevadas
- Mayor probabilidad de compras en efectivo por parte de los compradores de segundas residencias
- Costos más altos para las segundas residencias y aumentos en las tarifas de préstamos impuestos por el gobierno
- Mandatos de regreso a la oficina que reducen el tiempo pasado en viviendas de vacaciones
- Mercados de alquiler estancados y restricciones a los alquileres a corto plazo
- Incertidumbre económica y preocupaciones sobre una recesión
Esta desaceleración contrasta fuertemente con el aumento en la demanda de segundas residencias durante la pandemia, que alcanzó un pico del 96.2% por encima de los niveles anteriores a la pandemia en octubre de 2020.
레드핀은 2024년 8월, 이차 주택에 대한 모기지금리 잠금이 전년 대비 13.1% 감소하여 8년 만의 최저치를 기록했다고 보고했습니다. 이 감소는 주요 주택에 대해 관찰된 5.2% 감소의 두 배가 넘습니다. 이차 주택 모기지 수요는 팬데믹 이전 수준에서 59.2% 급감했으며, 주요 주택의 경우는 31.9% 감소했습니다.
이러한 추세에 기여하는 요인은 다음과 같습니다:
- 높은 주택 가격과 높은 이자율
- 이차 주택 구매자에 의한 현금 구매 가능성 증가
- 이차 주택 비용 증가 및 정부 부과 대출 수수료 인상
- 사무실 복귀 의무가 휴가용 주택에서의 시간을 줄임
- 정체된 임대 시장과 단기 임대 제한
- 경제적 불확실성과 불황 우려
이 둔화는 팬데믹 동안 이차 주택 수요가 팬데믹 이전 수준보다 96.2% 증가한 2020년 10월의 급증과 뚜렷하게 대비됩니다.
Redfin signale une baisse significative des verrous de taux hypothécaires pour les résidences secondaires, chutant de 13,1% par rapport à l'année précédente en août 2024, atteignant un niveau le plus bas en huit ans. Cette diminution est plus de deux fois supérieure à la baisse de 5,2% observée pour les résidences principales. La demande de prêts hypothécaires pour les résidences secondaires a plongé de 59,2% par rapport aux niveaux d'avant la pandémie, contre une baisse de 31,9% pour les résidences principales.
Les facteurs contribuant à cette tendance incluent :
- Des prix de l'immobilier élevés et des taux d'intérêt élevés
- Une probabilité accrue d'achats en espèces par les acheteurs de résidences secondaires
- Des coûts plus élevés pour les résidences secondaires et une augmentation des frais de prêt imposée par le gouvernement
- Des mandats de retour au bureau réduisant le temps passé dans les maisons de vacances
- Le marché locatif stagné et les restrictions sur les locations à court terme
- Une incertitude économique et des préoccupations de récession
Cette lenteur contraste fortement avec la flambée de la demande de résidences secondaires pendant la pandémie, qui avait atteint un pic de 96,2% au-dessus des niveaux d'avant la pandémie en octobre 2020.
Redfin berichtet von einem erheblichen Rückgang der Hypothekenzinsbindungen für Ferienhäuser, die im August 2024 im Vergleich zum Vorjahr um 13,1% gefallen sind und damit einen Achtjahrestiefpunkt erreichen. Dieser Rückgang ist mehr als doppelt so hoch wie der Rückgang von 5,2%, der bei Hauptwohnsitzen beobachtet wurde. Die Nachfrage nach Hypotheken für Ferienhäuser ist im Vergleich zur Zeit vor der Pandemie um 59,2% gesunken, während der Rückgang bei Hauptwohnsitzen 31,9% beträgt.
Faktoren, die zu diesem Trend beitragen, sind:
- Hohe Immobilienpreise und steigende Zinsen
- Erhöhte Wahrscheinlichkeit von Barzahlungen durch Käufer von Ferienhäusern
- Höhere Kosten für Ferienhäuser und staatlich auferlegte Gebührenerhöhungen bei Krediten
- Rückkehranordnungen ins Büro reduzieren die Zeit, die in Ferienwohnungen verbracht wird
- Stagnierende Mietmärkte und Einschränkungen bei Kurzzeitvermietungen
- Wirtschaftliche Unsicherheit und Rezessionsängste
Diese Verlangsamung steht im krassen Gegensatz zum Anstieg der Nachfrage nach Ferienhäusern während der Pandemie, die im Oktober 2020 ihren Höhepunkt mit einem Anstieg von 96,2% über den Vor-Pandemie-Niveaus erreichte.
- Typical home prices in seasonal towns increased by 4.1% year-over-year to $589,162 in August 2024
- Home prices in non-seasonal towns rose by 4.7% year-over-year to $437,787 in August 2024
- Mortgage-rate locks for second homes fell 13.1% year-over-year in August 2024
- Second-home mortgage demand decreased 59.2% from pre-pandemic levels
- Primary home mortgage-rate locks declined 5.2% year-over-year
- Government raised loan fees for second homes in 2022, increasing purchase costs
- Short-term rental owners are generally earning less revenue
- Many cities have imposed restrictions on short-term rentals
Insights
The 13.1% year-over-year decline in mortgage-rate locks for second homes signals a significant cooling in this market segment. This drop, more than double the decline for primary homes, indicates a disproportionate impact on the luxury and investment property sectors. The 59.2% decrease from pre-pandemic levels further emphasizes the market's contraction. This trend could potentially lead to price pressures in vacation home markets, affecting companies like Redfin (NASDAQ: RDFN) that operate in these areas. The shift might also impact mortgage lenders and banks specializing in second-home financing, potentially reducing their revenue streams. Investors should monitor how this trend affects Redfin's business model and revenue, especially in seasonal towns where the average home price (
The sharp decline in second-home mortgage demand reflects a broader shift in the real estate market. With the typical home in seasonal towns priced at
The substantial decrease in second-home mortgage demand is a leading indicator of economic sentiment. The fact that this decline (
Mortgage-rate locks for second homes have dropped
This is according to a Redfin analysis of Optimal Blue data. A mortgage-rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time; roughly
Mortgage demand is sluggish across the board due to high home prices and elevated interest rates, but mortgage demand for second homes is especially slow for several reasons:
- Second-home buyers are more likely to have the funds to pay in cash to escape the sting of elevated mortgage rates. While rates have ticked down in recent months, they’re still more than double the all-time low hit during the pandemic. When mortgage rates are low, many second-home buyers will take out mortgages even though they can afford to pay cash so that they have more cash to invest elsewhere, like the stock market. But when rates are elevated, it's often more financially prudent to put that cash toward a home purchase to avoid large interest payments.
-
Second homes are more expensive, and aren’t a necessity like primary homes. That means when housing costs rise, many prospective second-home buyers back off. The typical home in a seasonal town—where a lot of second homes are located—sold for
$589,162 4.1% from a year earlier. That compares with$437,787 4.7% . The government also raised loan fees for second homes in 2022, increasing the cost of buying one. - Employers are asking workers to return to the office, meaning people have less time to spend in vacation homes.
- Asking rents have stagnated below their record high, so buying a second home to rent it out has become less attractive. Owners of short-term rentals on sites like Airbnb are generally earning less revenue, and many cities have imposed restrictions on short-term rentals.
- Economic jitters: The labor market is weakening and Americans are concerned about a recession, making them especially wary of moving forward with large purchases.
“Most of the homes that are sitting on the market right now are second homes—especially those in the
The slowdown in the second-home market comes after a surge in demand during the pandemic. Mortgage-rate locks for second homes skyrocketed a record
To view the full report, including a chart and methodology, please visit: https://www.redfin.com/news/second-home-purchases-august-2024/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240912746059/en/
Contact Redfin
Redfin Journalist Services:
Isabelle Novak
press@redfin.com
Source: Redfin
FAQ
What is the current trend in mortgage-rate locks for second homes according to Redfin (RDFN)?
How does the decline in second-home mortgage-rate locks compare to primary homes?
What factors are contributing to the slowdown in second-home purchases according to Redfin's report?
How have home prices in seasonal towns changed according to Redfin's (RDFN) August 2024 data?
What was the peak increase in second-home demand during the pandemic, as reported by Redfin (RDFN)?
