WRE News May 15, 2024
Buyer
Enthusiasm for vacation homes waned during 2023, according to new data from Redfin (NASDAQ:RDFN).
Last year, homebuyers took out 90,772 mortgages for second homes in 2023, down 40% from a year earlier and down 65% from the pandemic housing boom’s 2021 peak. In comparison, mortgages for primary homes fell 20% year-over-year in 2023 and were down 35% from 2021.
Only 3% of all mortgages went to second-home buyers in 2023, down from 5% in 2020. Redfin attributed the souring on second homes to increased costs – the typical second home was worth $475,000 in 2023, versus $375,000 for primary homes – and to the federal government’s increased loan fees for second homes.
As for those seeking vacation homes, 86% of second-home mortgages were issued last year to high-income buyers, while nearly four in five (79%) vacation-home mortgages went to White homebuyers and roughly 58% went to Gen Xers. Second-home mortgages recorded their largest share of originations in West Palm Beach, Florida, where just under 7% of all mortgage originations last year were for second homes, followed by Orlando (4.1%), Riverside, California (4%), New Brunswick, New Jersey (3.9%) and Tampa (3.6%).
Stay up to date on the latest real estate trends.
October 14, 2024
There are two types of people in the world: those who brush their teeth before breakfast and those who brush their teeth after breakfast.
October 14, 2024
It’s that time of year.
October 14, 2024
Based on a recent study, in 22 of the top 50 metros, the monthly mortgage payment is lower than the rent payment.
October 13, 2024
A total of 87,108 residential properties carried foreclosure filings during the third quarter of this year, according to new data from ATTOM.
October 13, 2024
Linda and Jerry Salzman fell in love with Delray Beach, Florida, back in November 2015.
October 12, 2024
In today’s column, I explore the human-to-human psychological phenomenon known as mirroring and reveal that modern-day generative AI can also partake in mirroring beha… Read more
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today