Symbolizing an uneven financial recovery in the United States
 
National real estate broker Redfin says mortgage applications for second homes in the United States climbed 84% year over year in January 2021. Although this is a drop from a peak increase of 118% year over year in September 2020, this is up significantly from a year ago and marks the eighth consecutive month of growth of 80% and more year over year.

The annual increase in second home applications is more than double the increase in primary residence applications. Demand for primary residences rose 36% year over year in January, down from a peak of 65% in September and the smallest increase since May.

The report is based on a Redfin analysis of mortgage rate foreclosure data from real estate analysis firm Optimal Blue. A mortgage rate freeze is an agreement between a buyer and a lender that allows the buyer to lock in an interest rate on a mortgage for a certain period of time, providing protection against future increases in interest rates. Buyers must specify whether they wish to obtain a mortgage rate for a primary residence, a secondary residence or an investment property. About 80% of mortgage rate locks result in actual home purchases.

The continued popularity of vacation homes is indicative of the increase in remote working due to the coronavirus pandemic. With white-collar workers able to work remotely and children learning from home, many affluent Americans choose to spend at least some of their time outside of densely populated cities and off to vacation destinations. The demand for second homes is also representative of the K-shaped economic recovery from the recession caused by the pandemic, with dozens of low-income Americans continuing to suffer financially as many high incomes benefit from the soaring. the value of performing houses and equity portfolios.

"While demand is down slightly from the fall peak, the fact that nearly twice as many second home buyers submitted applications in January compared to the previous year means the popularity of second home buyers. Vacation cities are not a fad, ”said Taylor Marr, Redfin economist. “Many Americans have realized remote work is here to stay, allowing some lucky people to work indefinitely in a lakeside cabin or ski condo. But if many well-off remote workers are able to make their dreams come true and buy second homes, it has become irrelevant. It is more difficult for many low-income people to purchase a primary residence as housing values ​​rise and the recession disproportionately impacts service workers. "

The overall demand for buying a home has increased in recent months due to low mortgage rates, remote work relocation and the desire for more space for home offices and school in the House. Total home sales increased 16% year over year in December (the most recent month for which data is available), the fourth largest increase on record, and pending sales increased by 35%.

House prices in seasonal cities increased 19% year over year in December 2020

Redfin further reports that U.S. home values ​​are increasing double-digit in seasonal and non-seasonal cities, but seasonal cities are seeing larger increases.

The median selling price of homes in seasonal cities rose 19% year over year in December - the most recent month for which data is available - to stand at $ 408,000. Home prices in non-seasonal cities rose 13% to $ 365,000 during the same period. For this analysis, Redfin defined a seasonal city as an area where more than 30% of housing is used for seasonal or recreational purposes.