Destination Staycation: Buying Vacation Homes in Massachusetts
By every metric imaginable, the real estate market is booming. Record low interest rates are spurring this surge in home buying because homeowners can lock in low mortgage rates. Many are taking advantage of these low rates to buy their first home. The oft maligned millennial generation is actually the largest demographic buying homes in this current market. However, not all of the current flurry of home sales can be contributed to first time buyers. Many of the homes being purchased are actually second homes. In fact, vacation homes are selling like hotcakes. In every vacation market in the United States, vacation home sales are through the roof. This trend is even hitting close to home. Vacation home sales in Massachusetts are skyrocketing. The team at Streamline Realty is here to look at the factors behind this trend and how it is playing out in our local real estate market.
The Reasons Behind Increases in Vacation Home Purchases
There is no single reason behind the surge in vacation home sales. However, almost all of them are responses to the COVID-19 pandemic.
Traditional Vacations Are Not an Option
Americans are used to being able to freely travel all over the nation, or even the world. The COVID-19 pandemic has severely impacted our vacation freedom. International travel is severely limited as other nation’s crack down on travel to limit the spread of the virus. Even taking a vacation inside the United States is more difficult. Many states now have mandatory quarantines if you are coming from another part of the country. Also, even if you are able to travel to another state, major attractions, such as Disneyland, are not even open. Travel restrictions and limited attractions have completely upended major vacation plans for 2020 and beyond.
With major vacation plans on hold until we are on the other side of the COVID-19 pandemic, many are turning to vacation homes. Buying a vacation home gives you a chance to get away even if hotels, restaurants and attracts are shuttered. Home sales are surging in mountains, forests, and on the coasts, where nature provides built-in vacation activities. Plus, what people used to spend on elaborate vacations, can now be spent on down payments for their vacation property.
Remote Work and School
A major reason that many are now thinking that it is the perfect time to buy a vacation property is the rise of telecommuting. In Boston, only 25% of workers had the option of working from home before the pandemic. As of this summer, over 75% of workers were no longer tied to their office. Many think this trend isn’t temporary. A majority of businesses are planning on increasing remote work options even once the pandemic is over. Workers are not the only ones who find themselves no longer shackled to the cities where they live. Many school children are also doing remote learning. This means that parents and children now have the flexibility to work or go to school anywhere, as long as there is internet.
Home buyers are taking advantage of being untethered to offices and schools by buying vacation homes. A second home is a significant financial commitment. It makes sense that someone wouldn’t want to make that commitment if they won’t get a lot of use out of it. Remote work and school is erasing that concern. Vacation homeowners are now free to spend more time at their second homes than ever before. According to the CEO of Redfin, many are buying vacation homes and then “taking a permanent vacation”.
Mortgage Rates Are Too Low to Pass Up
Today’s rock bottom interest rates are also another big factor behind why so many are buying vacation properties. Anyone who has considered buying a vacation home in the recent past is now turning that consideration into a reality. The current interest rate landscape is very favorable for home buyers and people want to take advantage of it. Homeowners who wanted to wait a few years before buying a second home are now moving up their timelines. They know they will still want a vacation property in the future, but interest rates might not be as low.
Vacation Home Destinations In and Around Massachusetts
Vacation home sales are booming all over New England. One of the more popular destinations in Massachusetts is Cape Cod. Cape Cod is seeing an uptick in home inquiries of about 50% over last year’s numbers. Massachusetts residents are looking beyond the state for their vacation home purchases. Realtors in New Hampshire and Maine are also seeing surges in real estate activity. A majority of the home buying activity is from people who call Massachusetts home. It is not only major vacation destinations that are cashing in on this newfound interest. Small towns and rural areas across New England are seeing increased real estate interest.
Final Thoughts
The pandemic has changed behaviors in the real estate market and this is seen in the number of homeowners buying vacation homes. Because of low interest rates, there is no better time than right now to get the second home you have always wanted. If you have been considering buying a vacation property for yourself, contact us. The team at Streamline Realty can help walk you through your options and help make your dream a reality.