The pandemic created a tremendous interest invacation homesacross the country. Throughout the last year, many people purchased second homes as a safe getaway from the challenges of the health crisis. With many professionals working from home and many students taking classes remotely, it made sense to see amigration awayfrom cities and into counties with more vacation destinations.
The2021 Vacation Home Counties Reportfrom theNational Association of Realtors(NAR) shows that this increase in vacation home sales continues in 2021. The report examines sales in counties where vacant seasonal, occasional, or recreational use housing account for at least 20% of the housing stock and compares that data to the overall residential market.
Their findings show:
- Vacation home salesrose by 16.4%to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales.
- Vacation home sales areup 57.2% year-over-yearduring January-April 2021 compared to the 20% year-over-year change in total existing-home sales.
- Home prices rose more in vacation home counties the median existing price rose by14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.
This coincides with data released byZelman & Associateson theincrease in salesof second homes throughout the country last year.
As the data above shows, there is still high demand forsecond getaway homesin 2021 even as the pandemic winds down. While we may see a rise in second-home sellers as life returns to normal, ongoinglow supply and high demandwill continue to provide those sellers with a good return on their investment.
Bottom Line
If youre one of the many people who purchased a vacation home during the pandemic, youre likely wondering what this means for you. If youre considering selling that home as life returns to normal, you have options. There are still plenty of buyers in the market. If, on the other hand, you want to keep your second home, enjoy it! Current market conditions show that its a good ongoing investment.
