Saturday Morning Coffee with CFG

This week’s edition includes a look into vacation homes, the June Jobs report and some good local info on our real estate market.

Jobs Friday Results Are In 

THE jobs report (non-farm payrolls) came in strong Friday with the unemployment rate remaining at 3.6% as the economy added 320k jobs last month.

Many in the media are commenting that “this doesn’t look like a recession,” but since the Fed has the dual mandate of balancing inflation and the strength of the labor market, they continue to hike interest rates.

Trends:

Anyone who traveled over the Fourth of July long weekend can attest to the fact that travel is back. This Travel Pulse article concludes that longer international and domestic stays, pet-friendly spots for your barky friend Buddy, and immersing yourself in wellness and outdoor activities are among the emerging post-pandemic travel trends this year.

Those lucky ducks who traveled to their vacation homes in Phoenix, Cape Coral, Naples, Myrtle Beach, or Las Vegas likely saw large equity gains since last Independence Day.

Similar to the overall housing market, the second-home market has cooled this summer relative to 2020 and 2021. However, demand is still relatively strong, especially as employers continue to offer remote work options, and inventory is beginning to creep up from historical lows.

For clients who are looking to purchase a home away from home (see if their dream getaway property is located in Pacaso’s top 50 second-home markets here), here’s some useful facts to know:

1. Second-home loans can sometimes have a lower interest rate than investment-property loans and only slightly higher interest rates than first-home mortgages, but..

2. To qualify for a second home, some lenders dictate that the property be located in a resort or vacation area or must be a certain distance from your primary residence

3. Although rental income cannot be used to qualify for a second home mortgage, you can still rent out your second home as long as you meet occupancy requirements

4. Contrary to popular belief, the minimum down payment requirement is 10%

In The Weeds Reads

1. Signs Of Cooling In Nation’s Least Affordable Markets As Inventory Levels Improve
2. NAR Releases Local Market Reports
3. Condos Offer Affordability In Most Locales
4. Millennials Continued To Drive Homeownership Demand In 2021
5. Single-Family Investor Activity Bounces Back In Q1 2022