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    Vacation Homes Remain Hot, Hot, Hot

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    While there are whispers of a cooling housing market, the booming vacation-home market is showing no signs of a low down. Lawrence Yun, chief economist for the National Association of REALTORS®, notes that even as companies bring employees back to the office, vacation homes will remain in demand. As you may have guessed, part of vacation homes’ rise in popularity has been attributed to the growth in remote work.
    Overall, home sales are showing some signs of cooling. Many first-time home buyers are getting priced out of the market, Yun said. The median existing-home price for all housing types was $359,900 in July, nearly an 18% increase from a year ago. Mortgage rates are likely to increase, which could make buying even more expensive, he added. NAR predicts mortgage rates will rise to 3.5% by mid-2022, as the Federal Reserve likely will begin to reduce its bond purchases before the end of the year.
    But vacation homes will remain a hot commodity. Rental prices for vacation homes will likely continue to rise too, Yun said.
    “One near-certain aspect of the post-pandemic economy, when it comes, is the flexible work schedule,” Yun told The Escape Home. “It is very hard to envision five days a week in the office. Therefore, vacation-home sales will continue to move higher, this year, next year, and for the foreseeable future.”
    For the full story, CLICK HERE.

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