After a summer slowdown, demand for second-homes jumped in September, according to the latest report from Redfin…(Redfin)
- Demand for second homes in September was 60% higher than it was before the coronavirus pandemic hit.
- This is down from the record 112% surge we saw in March, but is higher than the 40% we saw in July.
Taylor Marr, Redfin Deputy Chief Economist, said in a statement that a new rule announcement from Fannie Mae probably also contributed to the slowdown in vacation-home demand during the summer…
- “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,…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 recent surge in second-homes, along with remote work, is creating tax and legal challenges for owners…(Wall Street Journal)
- “Designating a primary residence is important to avoid having all of your income taxed by multiple states, said Janet Hagy, president of CPA firm Hagy & Associates in Austin, Texas. “You prevent that by keeping track of the number of days you’re in a particular state,” she said.”
Second homes during COVID also create unique first world problems as well. Such as, finding a local doctor at each location, remembering which house has which clothes, deciding where to send your children to school or determining which of your residences is your primary.