Second home buyers have a new love for the Southeast

Spencer Rascoff (Co-Founder, Pacaso) & Austin Allison (Co-Founder & CEO, Pacaso). Florida, Tennessee, and Kentucky counties top Pacaso’s list of most in-demand motel markets in 2021 (iStock, Pacaso)

The pandemic has given homebuyers the freedom to move out of urban centers, and that seems to have benefited the second-home market in places of uncertainty.

Franklin County, on the island of Florida, saw the largest second-year increase in second-year home purchases of any U.S. county for the first 10 months of 2021, according to a new report. analysis Mortgage rates locked by Pacasso.

As of October, more than half of the mortgage rate locks in the Sunshine State’s third least populous district were for second homes, according to Pacaso, with an average cost of $877,000. The market share of locking second homes on the market increased by 11.5% compared to 2020.

Pacaso, which sells shares of luxury second homes to aspiring buyers, has ranked the market by year-over-year increase in second home rates – a leading proxy and indicator for sales – as a percentage of the overall mortgage rate. When applying, buyers must specify whether they are looking to purchase a primary home, secondary home or investment property.

Sevier County in Tennessee, which borders the Great Smoky Mountains National Park – the setting of famous author Cormac McCarthy’s early novels – is second on the list, with a 9.7% increase, followed by Kentucky’s Trigg County, with a 9.3% increase. The median price for a second home in the two markets was $574,000 and $409,000, respectively.

Oktibbeha County, Mississippi, ranked fourth, with an 8.2% increase in exchange rate keys and a median second home price of just $188,000.

The affordable second home markets skewed towards the luxury segment have seen a significant drop in sales activity. Dukes County in Massachusetts, which includes Martha’s Vineyard and where the median second home price is $1.6 million, recorded its biggest year-over-year decline in lock-in rates – falling 19.4%.

Wyoming’s Teton County, home to ski mecca Jackson Hole, and where the median second home price is $3.4 million, has seen market share of second home mortgage rate locks down 7.9%.

“Price increases and limited inventories may have contributed to the year-on-year decline, as well as the emergence of other, more affordable markets with more goods,” Pacaso said in its report. more inventory”.

Optimal Blue, a real estate analytics firm, provides mortgage rate lock data. Counties that failed to register at least 50 second-home sales were excluded. Second home buyers have a new love for the Southeast

Dais Johnston

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