Demand for primary homes also decreased by 1% in August
According to Redfin, demand for second homes has declined for the third consecutive month.
In August, demand fell 19.3% compared to the same period a year ago, the technology-driven real estate brokerage reported. At the same time, demand for primary homes has also declined by 1% compared to a year ago, marking the second straight month of decline for such homes.
According to Redfin, demand for second homes has declined significantly compared to primary homes, mainly due to the fact that a year ago there was a “relatively large gain in demand” for vacation or second homes.
“Demand for vacation homes during the coronavirus pandemic soared by 172% in April – with many affluent Americans seeking to escape cramped city life amid the restrictions on staying home,” Redfin said.
However, “insatiable demand” for such homes has slowed as the overall housing market begins to cool – especially now that children are going back to school.
“The pandemic is not over, but the urge to survive is not as strong as it was before,” said Taylor Marr, Redfin’s chief economist. “People are rapidly returning to normal life, children are going back to school and cities are coming to life again.”
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The housing market is still “booming” but not as strong as it was in late 2020. According to Marr, homebuyer competition, migration and home-sales growth have all slowed.
Still, interest in second homes is well above pre-pandemic levels and is projected to remain high as many Americans will be working for the foreseeable future, according to Marr.
During the first four months of the year, second home or vacation home sales accounted for 6.7% of total current home sales. That’s up from 5% in 2019, according to Redfin, which cited a recent report from the National Association of Realtors.