With the pandemic, there was a surge in 2nd home buying. In response, Fannie made some lending changes, from Jann Swanson at MortgageNewsDaily: Fannie Warns Lenders on Investment Properties and 2nd Homes.
I’m looking at data for some second home markets – and I’m tracking those markets to see if there is an impact from the lending changes.
This graph is for South Lake Tahoe since 2004 through December 2021, 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.
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 – above the record low set in March 2021, but down YoY – and prices are up sharply YoY.