During the covid-19 pandemic, demand for second homes surged in the U.S. In pre-pandemic times, around 3-4% of mortgages were associated with second homes. However, due to low interest rates, and the ability to work remotely, this market heated up tremendously. During August 2020, mortgages associated with these purchases increased to a historical high of 5.5%. Furthermore, it surged again in February 2021 to 6.6%.
Right now, demand has tapered off, but still remains high compared to pre-pandemic times. In June of this year, the mortgages associated with this purchase was 4.4%. Experts expect that this surge will ease. However, because the pandemic is still affecting the world, mortgage rates are still low, and remote work is still happening, many people are still looking for these real estate options.
Much like the rest of the real estate market in the country, prices for second homes has surged. In fact, the average price for these purchases went up 14.9% in July compared to 14.8 for primary homes.
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