Vacation Home Sales Surges During Pandemic

Vacation home sales have been surging during the pandemic, according to NAR’s recently released 2021 Vacation Home Counties Report. In 2020, vacation home sales rose by 16.4%, outpacing the 5.6% growth in total existing-home sales. Vacation home sales have continued to pick up during January-April 2021, rising by 57.2% year-over-year, more than twice the 20% growth in total existing-home sales during the same period. The share of vacation home sales to total existing-home sales has increased to 6.7% in the first four months of 2021, up from a 5% share in 2019.

The surge in the demand for vacation homes has occurred during the pandemic when people are able to work from home, students are schooled virtually, people are taking safety precautions and staying away from crowded areas, and with urban-based recreation limited by social distancing regulations.

Vacation Home Counties Outperform Non-vacation Home Counties

Vacation home counties are outperforming non-vacation home counties in terms of sales pace, price appreciation, and how much faster the homes are selling on the market, according to NAR’s analysis of 145 vacation home counties and 1,060 non-vacation home counties.1

Existing-home sales typically rose by 24.2% on average in vacation home counties, more than double the 11.2% annual pace in non-vacation home counties.2

Home prices rose at a stronger pace in vacation home counties. The median existing-home sales price typically rose by 14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.

Properties typically stayed longer on the market in vacation home counties at 59 days, compared to 30 days in non-vacation home counties, in 2020. However, the time to sell a home in vacation home counties has sped up more than in non-vacation home counties. In 2020, properties in vacation home counties typically sold more quickly by 13 days compared to eight days in non-vacation home counties.

Inflation, How it looks today for real estate

Friday the Fed’s preferred inflation measure PCE came in WAY higher at 3.6 vs estimates of 2.2 (remember their target is 2%). This reading is obviously concerning for inflation watchers and would normally send bond traders into a selling frenzy. For now the Fed’s “transitory” message seems to have everyone lulled into a temporary sense of security. Will have to see how long that can last!.

Tuesday ISM Manufacturing posted very strong reading of 61.2 vs estimates of 60.7, anything > 50 is considered expansionary.

Wed the Fed Beige Book was released. This is a summary of economic data from the 12 Fed Districts and is used in monthly meetings. Most districts reported moderate growth siting manufacturing and home builders struggling to obtain materials and workers. Business owners also reported the struggle to hire workers and needing to pay hiring bonuses and higher wages to attract the help they need (read- this could cause wage inflation).

Cyber attackers are finding new victims to prey on. 2 weeks ago they shut down a gasoline pipeline company and this week JBS a very large meat packer. No word whether JBS paid a multi million dollar ransom BUT they did confirm plants have resumed operations. As if supply chains weren’t challenged enough now the bad guys are disrupting things too!!!

Lets meet with me for more details and strategy of your housing needs.

Is this good time to buy a house

What a crazy day for buying a house. If you are actively looking for the house, you surely know the how challenge to find a right dream house. Who are purchased a house, they surely compromised many of their interests due to the fact of scarcity of houses in the market and huge competence?

* After all, now question could be arising is this right to time to buy a house?
* What happens to house price if buy a house in such a high price?
* Are there any better options to fulfill my needs?

I am stand by here to address your questions.