Demand for Second Homes in the U.S. Hits Highest Level in a Year
COVID has changed the way many Americans are living. After a year devoid of vacations and the onset of remote work, Americans have decided to reside in their favorite vacation destinations.
Interest in second homes is up 87% compared to pre-pandemic levels, just below its peak of 90% in September 2020 according to Redfin.
Demand for vacation homes in the U.S. picked up pace in January, up 87% compared to pre-pandemic levels, the highest in a year according to Redfin.
The growth significantly outpaced demand for primary residences, which was up 42% in January compared to pre-pandemic levels.
Hailey Idaho Takes Steps to Curb Second Homes
Escalating Real Estate in Hailey, Idaho has caused a local housing crisis.
Hailey Planning and Zoning is taking steps to curb or tax second home owners in an effort to prioritize housing for essential workers.
See the full article here: Idaho Mountain Express
Low Mortgage Rates Spur Second Home Purchases
Record low mortgage rates continue to spur second home demand. Rates for your primary residence at the beginning of 2022 continue to sit at a record low of 3%. Contact your bank or Kirsten for a local mortgage broker referral to see what options are available for you.
Rates are predicted to rise in 2022 which may decrease demand for large second home purchases.
Remote Work Fuels Second Home Demand
Remote work continues to be a driving factor fueling second home demand. Workers are adjusting to remote work and reluctant to return to office locales.
Prices Soar and Inventory Is Limited
It’s no surprise the increased demand has caused prices to surge in seasonal locales. Real Estate in Hailey, Idaho has followed suit with many desirable locations nationally.
A typical house in a seasonal town—an area where more than 30% of homes are used for just part of the year—sold for $501,000 in December, the most recent data available. That’s a 20% year-over-year increase and was the 18th straight month of double-digit price growth. At the same time, inventory in such locations was down 29% annually in the fourth quarter.
In contrast, the median sales price of a residence in a non-seasonal town was $408,000 in December, a 13% year-over-year rise. Inventory dropped 16% in the fourth quarter, the figures show.
Hailey Looks to Protect Housing For Essential Workers
Real Estate in Hailey Idaho reached a median price of $518,250 in 2021 pricing many essential workers out of housing. The Sun Valley area relies on essential workers for the tourism industry, hospital, and schools.
Rents rose 42% in 2021 and now average $2,275/month. Discussions surrounding this issue are heated and range from taxing seasonal residents, limiting nightly rentals, offering subsidized housing and more.
Hailey looks to successful programs in Aspen, CO and Vancouver, Canada for guidance in creating a program to improve local housing for essential workers.
Call us today to set up your first appointment in the Sun Valley area: (208) 721-4131