Based on sales during the July to September period, the National Association of REALTORS® (NAR) says vacation home sales are up 44 percent year-over-year. Not only are they selling faster than last year but the number of units is up.
Across the nation, 72 percent of existing vacation homes that closed in October were on the market for less than a month.
Low mortgage rates and the pandemic seem to have increased the desirability and affordability of vacation homes states the NAR. Also having the ability to work from home seems to be contributing to this increase.
The average commitment rate for all of 2019 was 3.94 percent. Freddie Mac is reporting the average commitment rates for a 30-year, conventional, fixed-rate mortgage decreased to 2.83 percent in October.
The decision to purchase a vacation or second home may have to do with safety. In highly populated areas like big cities and suburbs, contagious diseases flourish. Most vacation or second homes are generally located in areas with less residents.
What also may be appealing is the slower pace when compared to city life. Or maybe proximity to the mountains or water has become a lure to people with the option to work from anywhere there is a Wi-Fi signal or cable internet available. So why not be in a place where you want to be?
Historically, Americans on the east coast left the cities during the 1793 yellow fever epidemic. The same migration took place in the mid-19th century during three waves of Cholera and Scarlet fever.
It is hard to say after we get through the COVID wave if the trend to live in a second or vacation home will continue as a permanent measure or if this type of home will flood the market when we get back to normal. But there is broad-based appeal and flexibility to homeowners who can afford it.
I can provide Insider Information on Fairfax VA homes for sale. Get you a FREE Market Snapshot Report of Your Northern Virginia Home’s Value, or Search All Northern Virginia Homes For Sale. Put that data you need at the tips of your fingers!