{"id":73051,"date":"2021-08-17T05:00:01","date_gmt":"2021-08-17T12:00:01","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=73051"},"modified":"2021-08-16T17:11:34","modified_gmt":"2021-08-17T00:11:34","slug":"second-homes-report-2021","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/second-homes-report-2021\/","title":{"rendered":"Demand for Vacation Homes Fell for Second Consecutive Month in July"},"content":{"rendered":"

Primary residence mortgage locks fell for the first time in over two years.<\/span><\/i><\/h2>\n

Demand for second homes fell 21% year over year in July, the second consecutive month of annual declines in mortgage-purchase locks. This followed 13 months of surging activity in second-home purchases.<\/span><\/p>\n

Demand for primary home purchases fell by 4% year over year in July. This was the first time the growth rate for second-home demand fell behind that of primary homes since April 2020.<\/span><\/p>\n

\"\"<\/p>\n

This is likely because soaring home prices caused some prospective second-home buyers to reconsider their plans. As of June, <\/span>home prices were up 25% to record highs<\/span><\/a> but have since <\/span>begun to plateau<\/span><\/a>.<\/span><\/p>\n

\u201cDemand for second homes remains well above pre-pandemic levels, and we can expect the high level of interest in vacation homes to persist in the new era of remote work,\u201d said Taylor Marr<\/a>, lead economist at Redfin. \u201cBuilders have responded to this increased interest by putting <\/span>more resources into building homes and less into hotels and lodging<\/span><\/a>. If you build it–amid a historic housing shortage–they will come. I expect vacation homes to remain popular as more homes are built.\u201d<\/span><\/p>\n

T<\/span>he data in this report is based on a Redfin analysis of mortgage-rate lock data for home purchases from real estate <\/span>analytics<\/span> firm<\/span> Optimal Blue<\/span><\/a>. 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<\/span> 80%<\/span><\/a> of mortgage-rate locks result in actual home purchases. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Primary residence mortgage locks fell for the first time in over two years. Demand for second homes fell 21% year over year in July, the second consecutive month of annual declines in mortgage-purchase locks. This followed 13 months of surging activity in second-home purchases. Demand for primary home purchases fell by 4% year over year 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