Second Home Demand Rebounded in September


Lake Winnipesaukee. File photo

Nation-wide demand for second homes rebounded in September at the same time as Lake Winnipesauke-area real estate stays in high demand as the Delta variant gave remote workers a reprieve from changes to companies’ work-from-home policies.

Remote workers relocating from Boston and New York City have emerged as a potent force in the New Hampshire real estate market, particularly in what were traditional vacation destinations.

A new Redfin report on mortgage-rate lock data from analytics firm Optimal Blue says the summer slowdown in demand for second homes definitively reversed, rising to 60 percent above pre-pandemic demand levels. Demand bottomed out in July at 40 percent above pre-pandemic demand.

Part of the slump – and resulting surge – could have been due to restrictions Fannie Mae put in March on the number of second-home mortgages it would buy, reducing their overall availability in the market. Federal housing regulators removed the restrictions in the middle of September in an effort to boost housing supply

“The market may have overreacted to the Fannie Mae rule a bit, which would explain why we’ve been seeing demand for second homes bounce back,” Redfin Deputy Chief Economist Taylor Marr said in a statement. “Mortgage rates are on the rise as well, which is likely creating a renewed sense of urgency for vacation-home buyers who want to purchase properties before rates climb even further.”

The removal of restrictions will likely help keep second-home demand elevated “for the foreseeable future,” Redfin said.