RALEIGH – Whether or not alongside North Carolina’s coast or within the mountains, the pandemic-era trip residence growth continues.
Demand for second properties, also referred to as trip properties, is up 87% in response to nationwide actual property brokerage agency Redfin, which analyzed nationwide mortgage knowledge from the fourth quarter of 2021.
That far outpaces the demand for major residences, which is up 42% in within the knowledge set in comparison with pre-pandemic ranges, Redfin discovered.
“Demand for second properties was robust in January as patrons tried to lock in comparatively low mortgage funds,” mentioned Taylor Marr, deputy chief economist for Redfin, within the new report. “Mortgage charges surpassed 3.5% in January for the primary time since March 2020, encouraging patrons who had been on the fence about buying a trip residence to commit earlier than charges enhance additional.”
One other current Redfin evaluation noticed Raleigh residents could possibly be most affected by a rise in mortgage charges, on the subject of figuring out a major residence thought-about inexpensive. Redfin economists are predicting a mean fee of three.9% for 30-year mounted mortgages by the tip of 2022. In early January, 30-year mounted mortgage charges had been about 3.1%, on common.
Seasonal cities seeing a growth
Redfin’s knowledge confirmed that residence costs in what their analysts thought-about “seasonal cities” are up 20% nationwide in December 2021 in comparison with December 2020, the most recent month of accessible knowledge. And that’s the 18th straight month the place the year-over-year change is within the double digits, Redfin mentioned.
Nationwide, the standard residence in a seasonal city bought for $501,000 in December 2021, the evaluation discovered.
However in non-seasonal cities, the median sale worth rose 13% and was discovered to be $408,000.
On the identical time, the examine discovered that there are fewer properties on the market in these seasonal cities, which Redfin outlined as “as an space the place greater than 30% of housing is used for seasonal or leisure functions in response to the 2019 Census.”
In seasonal cities, the variety of properties on the market was down by 29% within the fourth quarter of 2021, in comparison with a 16% decline in stock in non-seasonal cities.
“Whereas I anticipate demand for second properties to stay increased than it was earlier than the pandemic, principally due to distant work, it might fall barely within the coming 12 months as mortgage charges proceed to go up and costs for second-home loans enhance,” mentioned Marr.