Even though home sales have begun to show signs of slowing, the market for vacation homes is not likely to slow any time soon.
According to National Association of REALTORS (NAR) chief economist Lawrence Yun, flexible work schedules in a post-pandemic economy will continue to drive demand for vacation home sales.
“One near-certain aspect of the post-pandemic economy, when it comes, is the flexible work schedule, which is here to stay. 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,” said Yun.
Overall, home sales are indicating the real estate market may be cooling. 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. In addition, many first-time buyers are getting priced out of the market as median existing home prices continue to increase.
Increased vacation home and second home sales are a good sign for Alabama’s real estate economy. Because home prices are below the national average, the Yellowhammer State has seen increased activity since the pandemic has shifted more interest to small and rural markets.
Alabama REALTORS® is the largest statewide organization of real estate professionals and the official advocate of Alabama’s multifaceted real estate industry. Subscribe to our newsletter and stay up to date on real estate news in Alabama.
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