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Mortgage applications for second homes increased by 84% year-over-year in January 2021, according to The World Property Journal. This marks the eighth straight month of 80%+ growth. The peak was 118% year-over-year increase in September 2020. In general the annual rise of second home applications is more than double than for primary homes. The demand for primary residences rose 36% year-over-year in January. Vacation homes have grown a lot in popularity during the past year.
With so many people working remotely, many people have opted to spend a lot of their time outside of densely packed cities. The Covid-19 pandemic has given a lot of people the freedom to spend their time in places other than their primary residences. With low mortgage rates, and the freedom to work from anywhere, the real estate industry has benefitted from the pandemic. Because so many people now have the freedom to spend their time in vacation destinations, the demand for vacation homes has been especially high. Although home values have risen by double digits in both seasonal and non-seasonal towns, seasonal towns are seeing bigger increases. In fact, home prices in seasonal towns have rose 19% year-over-year as of December 2020.
