NEW YORK (AP) The number of people who purchased second homes at a record pace in the last three years is fueling an even more dramatic jump in the pace of house price appreciation.
Real estate agents say a surge in second home sales over the past three years has pushed home buyers into a frenzy to buy another home.
The surge is driven by an influx of young professionals looking to buy a second home and by older homeowners who are taking on debt for the privilege of owning their own homes, said Steve DeAngelo, senior vice president of marketing and sales for Arv Real Estate in New York.
“It is the craziest thing I have ever seen,” DeAngelo said.
“I am a millennial and I am just trying to build my family with my husband and three kids, and we are doing that.
We are not buying houses, and it’s crazy.”
In addition to a surge of second home purchases, there have been a lot of second homes sold in recent months.
In February, there were more than 7,300 listings on the market for new or remodeled homes in New Jersey, a state that is home to nearly 10% of the nation’s home sales, according to real estate website Trulia.
A new study from real estate firm Kroll Analytics finds that more than 40% of first-time buyers, who had previously bought a home in the past six months, are now spending $3,000 or more on a second mortgage.
A new report by real estate data firm CoreLogic found that nearly half of new buyers in March were spending more than $100,000 on a new home.
The number of homebuyer households who have purchased second-home purchases has doubled since last year, while the number of second-hand homes sold has tripled.
According to CoreLogo, the number is nearly three times higher than in 2016, which was a record high.
Home prices have gone through a steep climb in the previous three years, driven in large part by an infusion of young buyers who are increasingly interested in buying a second house.
The number has risen even as the national unemployment rate has fallen.
A survey from the U.S. Bureau of Labor Statistics last year found that 18% of 18- to 29-year-olds who were working or looking for work were either looking for a second residence or looking to purchase one.
The unemployment rate among these workers was 9.4%, the lowest among all age groups in the country, according a survey by the Federal Reserve Bank of San Francisco.
The latest data suggests that second- home purchases may be driving the growth of a new generation of buyers, and that young people are the most likely to buy homes.
The trend toward second home ownership is seen in a nationwide survey by Kroll, which found that more millennials, the youngest of the new wave of buyers who now constitute about 10% or more of the U