Vacation Property?

By
Real Estate Agent with KW Evolution - Topsfield, MA 92593-B

Since recognizing we were all transported to Bizarro World, in late 2019, life has been upside down. Who would have thought that, during a pandemic, Real Estate would be in such demand OR that professional Real Estate agents would have the best years of their career(s)?

So, why does it surprise me that vacation properties are also in demand? The article below offers a plausible explanation of WHY...

Demand for Vacation Homes Is Still Strong

Demand for Vacation Homes Is Still Strong

The pandemic created a tremendous interest in vacation homes across 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 a migration away from cities and into counties with more vacation destinations.

The 2021 Vacation Home Counties Report from the National 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 sales rose by 16.4% to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales.
  • Vacation home sales are up 57.2% year-over-year during 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 by 14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.

This coincides with data released by Zelman & Associates on the increase in sales of second homes throughout the country last year.

As the data above shows, there is still high demand for second getaway homes in 2021 even as the pandemic winds down. While we may see a rise in second-home sellers as life returns to normal, ongoing low supply and high demand will continue to provide those sellers with a good return on their investment.

Bottom Line

If you’re one of the many people who purchased a vacation home during the pandemic, you’re likely wondering what this means for you. If you’re 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 it’s a good ongoing investment.

 

Thank you to KCM for researching and providing this information

 

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (12)

Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Doug Dawes - Sedona has always been a second home or vacation home market.  But when our state decided to make it easier to allow short-term rentals, investments in vacation homes started really picking up.  Your assessment is right on target.  

There were some areas with CC&Rs and HOA requirements that lock in long-term rentals previous to the short-term rental law.  They are grandfathered and superseded the state law.  Areas that are not grandfathered are seeing a lot of activity.  

Jul 09, 2021 09:47 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Doug,

Thank you for sharing this great article with us.  Wishing you a wonderful weekend.  Happy Friday.  A

Jul 09, 2021 11:45 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

My market is and always has primarily been second/vacation homes.  In the down turn I had to seek out other business and also found a niche in first time buyers, but that has certainly shifted back to mostly vacation homes now.  And of course a few retirement homes. 

Jul 09, 2021 01:14 PM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Vacation homes are a good part of our local market, although since Covid, we are seeing more and more sellers cashing in on their vacation homes and buyers who will be occupying moving in.

Jul 09, 2021 03:25 PM
Mark Don McInnes, Sandpoint
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Hello Doug,  57% single year jump.  Figures like that are just so tough to wrap around even when in black and white from reputable sources.  I find myself shaking my head more than once during any one week.  Thank you for sharing.   Mark`

Jul 09, 2021 06:09 PM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Sheri Sperry - MCNE® 

People want to escape their everyday world. I just can't fathom all the money that's out there?

Jul 10, 2021 08:52 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Ron and Alexandra Seigel 

Thank you very much and likewise, do enjoy this weekend

Jul 10, 2021 08:53 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I'm glad to hear things in your area are returning to "normal" Tammy Lankford, 

Jul 10, 2021 08:54 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

With the appreciation running wild many vacation homeowners will take advantage of that appreciation Lynnea Miller 

Jul 10, 2021 08:56 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

It IS hard to wrap the staggering increases real estaye is taking Mark Don McInnes, Sandpoint 

Jul 10, 2021 08:57 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Doug - I am so glad I bought my second home (also vacation home) four years ago.  Not only is it fun but my investment has grown.

Jul 12, 2021 09:15 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I'm glad that has worked out for you Grant Schneider Sometimes a change in scenery is the medicine the heart needs

Jul 13, 2021 08:00 AM