During the height of the pandemic, many homeowners realized their homes didn’t fulfill their lifestyle needs any more. Extra space became highly desirable and as a result, sales of primary residences grew by 9% in 2020. That increase in demand was met by the lowest supply of homes for sale in history and caused prices to skyrocket over the past twelve months.
What does this mean to those who purchased a second home during the pandemic?
According to a Zelman report, sales for second homes rose by 27% in 2020. That’s likely because many people purchased a larger second home farther away and temporarily moved there to stay safe instead of permanently moving elsewhere. That large second-home retreat likely demanded a higher price than the average house.
Let’s assume a buyer purchased such a home for $500,000. Assuming the middle 13.2% appreciation shown above, that home would now be worth about $566,000. Those who bought second homes to improve their lifestyle during the height of the pandemic also made a great investment.
Buyers of second homes now have a decision to make. Should they keep the second home?
Ask yourself the following questions if you’re currently weighing your options:
- Would you go to the second home during your off time, or would you return to the movie theater, attend sporting events, eat at restaurants, or spend your time traveling?
- Now that you may have to go back to the office, would you still use the second house enough to warrant the expenses of an additional home?
With the pandemic coming to a close, you now need to decide whether to continue paying the extra expenses or sell the house and cash in your profit. If you decide selling is the right move for you, let’s connect today to discuss the value of your second home!