NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
Vacation/Second Home Market Activity
For Every Vacation-Home Fantasy, There Is a Harsh Financial Reality (Wall Street Journal, Sep. 12, 2022)
“Sales of second homes are way down from last year’s boom, dipping below prepandemic levels (February 2020) for the first time in two years, due in part to high prices and rising mortgage rates, said Daryl Fairweather, chief economist at Redfin.”
Demand for Second Homes Declines in 2022 and is Below Pre-Pandemic Level (Core Logic, Sep. 2, 2022)
“Flexibility to work remotely, coupled with record-low interest rates, induced the hike in second home demand in 2020 and 2021.Though remote work remains common in 2022 and will for the foreseeable future, low interest rates have vanished, while home prices are at record highs. As a result, home affordability has decreased for all, whether looking to buy a primary residence or a second home.”
How the Pandemic Triggered Vacation House Changes (REALTOR® Magazine, Aug. 2, 2022)
- Post–pandemic vacation homes need a whole new set of amenities that complement current reality.
- More people are taking longer breaks from the city and working from home, so connectivity is important.
- With more communities toughening rental rules, buyers must stay abreast if earning extra income is a goal.
Vacation Home Purchases in High Disaster-Risk Areas Up 45% (National Mortgage News, Jul. 6, 2022) E
The number of second homes purchased between 2020 and 2021 that were susceptible to flooding rose by 44.8% compared to those acquired from 2018 to 2019, and exposures to other types of natural disasters like storm, heat, fire and drought also rose by around 30% or more, according to a Redfin analysis released Tuesday.
Soaring Mortgage Rates in U.S. Dent Demand for Vacation Homes (Bloomberg.com, Mar. 2022) E
Would-be buyers of vacation homes face another potential obstacle: a fee increase ranging from an additional 1% to 4% on second-home loans backed by Fannie Mae or Freddie Mac. That could tack on as much as $12,000 to a $300,000 mortgage, payable upfront or rolled into the loan.
Vacation Home Counties Report (National Association of REALTORS®, 2021)
- In 2020, vacation home sales rose 16.4%, outpacing the growth in total existing-home sales of 5.6%.
- In 2020, the median existing-home sales price typically rose by 14.2% in vacation home counties, compared to 10.1% in non-vacation home counties.
- In 2020, the top 10 vacation home counties were in the states of Florida, Maryland, Massachusetts, Michigan and North Carolina.
Working With Vacation/Second Home Buyers
3 Things to Consider When Working with Second-Home Buyers and Sellers (RISMedia, Sep. 15, 2021)
Be ready to pounce if a property comes on the market in a location the client desires. With multiple offers now the norm, developing a coherent strategy is important. Setting proper expectations (and managing them) is vital whether you’re representing the buyer, seller or both.
I'm A Financial Planner, And There Are 3 Things I Always Tell Clients Before Buying A Vacation Home (Insider, Apr. 12, 2021)
How much use will the property get? How will it be financed? How will rental use be managed?
4 Things Financial Planners Wish People Knew Before Buying a Second Home (Insider, Oct. 20, 2020)
- Buying a second home takes patience, preparation, and lots of savings.
- Financial planners wish their clients knew all the expenses involved in owning a second home, because the costs add up.
- They also wish their clients knew that they didn't have to have their first homes paid off before buying, and that rental income isn't guaranteed.
RSPS (Resort & Second-Home Property Specialist)
RSPS Certification (National Association of REALTORS®)
Find a RSPS Specialist (National Association of REALTORS®)
Resort Area and Second Home Specialty, (National Association of REALTORS®)
NAR Education Matrix—Resort and Second Home Markets, (National Association of REALTORS®)
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
Buying a Second Home (eBook)
How a Second Home Can Be Your Best Investment (eBook)
Second Homes for Dummies (eBook)
The Complete Guide to Buying a Second Home or Real Estate in Mexico (Audiobook, eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Investing in a Vacation Home for Pleasure and Profit (Mason, OH: Thomson South-Western, 2006) HD 1341 B69
How a Second Home Can Be Your Best Investment (New York, NY: McGraw-Hill, 2004) HD 1341 K28
REBAC Roundtable 2004, Volume II, Resort, Vacation and Second Home Markets (Chicago, IL: Real Estate Buyer's Agent Council, Inc., 2004) CD016
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