Vacation Home Buyers Lock in Low Mortgage Rates 2021-04-02
Gulf Coast Real Estate Update
April 2nd, 2021
Vacation Home Buyers Storm the Beaches
An article in yesterdays Wall Street Journal entitled “Vacation Home Buyers Propped Up the Mortgage Market” stated “The pandemic set in motion a furious scramble to buy vacation homes”. The article went on to say that the number of buyers who locked in mortgage rates on second homes in February was up 93% from a year earlier. That is nearly triple the increase for mortgages on primary residences.
Bringing it closer to home, take a look at our market here for Gulf Front Condos for the 1st quarter of 2020 vs 2021.
It’s plain to see that many buyers chose our Gulf Beaches for their place in the sun. Some choose to take advantage of low mortgage rates but you may be surprised to know that half of these buyers paid cash..
Although mortgage rates remain low, we are beginning to see a pullback by those looking to enter the housing market. In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when mortgage rates hit record lows, to 8% above pre-COVID levels today.
