Redfin Reports Vacation-Home Demand Rose 83% Above Pre-Pandemic Levels in November

Rhea-AI Summary

In November, demand for second homes surged by 83% compared to pre-pandemic levels, driven by ongoing remote work and low mortgage rates, as per a Redfin report. This increase follows a 72% rise in October and remains below January's peak of 91%. Despite the seasonal slowdown in the housing market, demand is projected to stay above pre-pandemic levels. Redfin Deputy Chief Economist Taylor Marr anticipates sustained interest in vacation homes due to current trends and concerns surrounding the Omicron variant.

Positive

• 83% increase in second home demand from pre-pandemic levels.
• Strong demand expected to continue during the pandemic.
• Low mortgage rates driving buyer interest.

Negative

• Slight decrease from January's record demand of 91%.
• Seasonal housing market slowdown could impact future sales.

SEATTLE, Dec. 17, 2021 /PRNewswire/ -- (NASDAQ: RDFN) —In November, demand for second homes was up 83% from pre-pandemic levels, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This is an uptick from October's 72% increase but still slightly below January's record 91%.

Demand for second homes surged as pandemic-related lockdowns and a new era of remote work made vacation destinations more desirable, with many wealthy Americans opting to exchange cramped city life for more space. But even as the overall housing market has begun its typical seasonal cooldown, demand is expected to remain above pre-pandemic levels.

"A combination of permanent remote-work policies and record-low mortgage rates is contributing to an uptick in demand, with buyers racing to snag vacation homes before interest rates increase further," said Redfin Deputy Chief Economist Taylor Marr. "I expect demand for second homes to remain strong for at least the full duration of the pandemic, which is now being prolonged by the spread of the Omicron variant."

Redfin's report is based on an analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue. 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, offering protection against future interest-rate hikes. Homebuyers must specify whether they are applying to secure a mortgage rate for a primary home, a second home or an investment property. Roughly 80% of mortgage-rate locks result in actual home purchases.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/vacation-homes-november-2021

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. 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 take an instant cash offer from Redfin or have our renovations crew fix up their home 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 $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

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.

 

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SOURCE Redfin

FAQ

What is the current demand for second homes according to RDFN's November report?

Demand for second homes rose by 83% compared to pre-pandemic levels in November.

How does the November demand compare to previous months for RDFN?

It increased from a 72% rise in October and is down from January's record 91%.

What factors are contributing to the rise in second home demand for RDFN?

Permanent remote work policies and record-low mortgage rates are driving the increase.

Is the demand for second homes expected to change in the coming months according to RDFN?

Yes, demand is expected to remain strong, especially during the ongoing pandemic.