by Calculated Risk on 5/10/2022 08:11:00 AM
With the pandemic, there was a surge in 2nd home buying.
I’m looking at data for some second home markets – and I’m tracking those markets to see if there is an impact from lending changes like the recent FHFA Targeted Increases to Enterprise Pricing Framework, rising mortgage rates or the easing of the pandemic.
This graph is for South Lake Tahoe since 2004 through April 2022, and shows inventory (blue), and the year-over-year (YoY) change in the median price (12-month average).
Note: The median price is distorted by the mix, but this is the available data.
Click on graph for larger image.
Following the housing bubble, prices declined for several years in South Lake Tahoe, with the median price falling about 50% from the bubble peak.
Currently inventory is still very low, but up from the record low set in February 2022, and up slightly year-over-year. Prices are up 12.7% YoY (but the YoY change has been trending down).
This will be interesting to watch, but so far there isn’t little evidence of a 2nd home slowdown in these numbers.