Leave a Message

Thank you for your message. We will be in touch with you shortly.

Mortgage Originations For Vacation Homes Down 40% In 2023

WRE News May 15, 2024

Buyer

Mortgage Originations For Vacation Homes Down 40% In 2023

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%).

 

Recent Blog Posts

Stay up to date on the latest real estate trends.

Lifestyle

3 Ways Parents Protect Kids From Social Media’s Mental Health Effects

December 21, 2024

Parents are increasingly aware that too much time on social media can harm kids’ and teens’ mental health.

Lifestyle

Christmas Star 2024: When To Show Your Kids The ‘Star Of Bethlehem’ Tonight

December 21, 2024

What’s the bright star in the east — and west?

Lifestyle

20 Innovative Breakthroughs That Will Transform Your Health

December 21, 2024

There are always new frontiers in health care: diseases whose treatment and cures still elude us; biological and medical mysteries that we’re yet to crack; public heal… Read more

Buyer

‘Silver Tsunami’ of Aging Boomers With $17 Trillion in Home Equity Will Trigger Wave of Wealth for Their Kids

December 20, 2024

Children of baby boomers are set to be on the receiving end of one of the largest generational wealth transfers in history as their parents prepare to bequeath them a … Read more

Buyer

Title Insurance Premium Volume Up 5.3% in Q3

December 20, 2024

The title insurance industry generated $4.3 billion in title insurance premiums during the third quarter, according to new data from the American Land Title Associatio… Read more

Lifestyle

Michael Phelps Says These 2 Parenting Tricks Are His Key To Raising Mentally Healthy Kids

December 20, 2024

When Olympic swimmer Michael Phelps wakes up in the morning, he asks himself how he can be his best self that day, not only for his own mental health, but also for his… Read more

We are Your GPS to Success Let’s Get Started

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

Follow Us On Instagram