Is It A Good Time to Buy Vacation Homes In America?
Analysts are using mortgage demand as a proxy for homebuyer demand, but cash buyers are a huge percentage of buyers in a second-home market.
Whether this is a good time to buy a vacation home depends on the local market.
There are few predictions of a slowing market coming, a handful of forecasts saying a plateau is coming, and zero predictions of prices dropping.
Buyers should realize this and don´t want to wait too long and risk having to pay higher prices.
Vacation Homes can lead to extra money since the Avg cash-on-cash returns of vacation homes are ~10%/year in the short-term rental markets.
An extreme shortage of housing has driven home prices up to unprecedented levels, and it´s a seller´s market nationwide.
Those who own second homes will sell them before their primary residence, and more inventory and lower demand will eventually make a more balanced market.