The sale of and demand for vacation homes skyrocketed during the COVID-19 pandemic, according to a new study from the National Association of Realtors (NAR). The 2021 Vacation Home Counties Report showed buyers flooded the real estate market in the second half of 2020 and through April 2021, causing vacation-home purchases to rise significantly.

 In 2020, the share of vacation-home sales to total existing-home sales rose to 5.5 percent (5 percent in 2019). Vacation-home sales rose by 16.4 percent, outpacing the overall growth in existing-home sales of 5.6 percent. From January to April 2021, the share of vacation-home sales to total existing-home sales rose to 6.7 percent. Vacation-home sales jumped 57.2 percent year-over-year compared with the 20 percent year-over-year growth in total existing-home sales.

 “Vacation homes are a hot commodity at the moment,” NAR Chief Economist Lawrence Yun said in a release. “With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers.”

 Areas where vacant seasonal, occasional or recreational-use housing account for at least 20 percent of homes – identified as vacation home counties by NAR – saw sales climb at a rate higher than the overall market during this period. Existing-home sales from 1,060 non-vacation home counties increased by an average of 11.2 percent, while the 145 vacation home counties recorded a jump of 24.2 percent from the prior year.

 According to the NAR report, median existing-home sale prices in vacation counties also grew faster than in the rest of the country, increasing 14.2 percent compared to 10.1 percent in non-vacation home counties.

 Properties in vacation-home counties, however, did typically remain on the market longer in 2020 than those in other areas (59 days compared to 30 days). Nevertheless, homes largely sold at a faster pace in vacation-home counties compared to the prior year by 13 days, versus just eight days in non-vacation home counties.

 Overall, the median number of net movers into vacation-home counties increased from 78,114 in 2019 to 98,279 in 2020.

 “The enduring opportunity for remote work will continue to raise the already high demand for property in these counties, particularly in those counties with reliable broadband internet service,” Yun added.

 The report found the top 10 counties were Lee County, Fla.; Oscoda County, Mich.; Swain County, N.C.; Collier County, Fla.; Dukes County, Mass.; Alleghany County, N.C.; Garrett County, Md.; Barnstable County, Mass.; Alcona County, Mich.; and Macon County, N.C.

 The NAR report revealed that those who buy vacation homes are more likely to do an all-cash transaction at closing. From January through the end of April 2021, all-cash sales increased to 53 percent of all vacation-home purchases, up from under 50 percent in past years. In comparison, 22 percent of all existing-home sales over the same period were all-cash sales.

 “Realtors all over the country have indicated that buyers in a position to pay in all cash are doing just that,” Yun said. “From a seller’s perspective, paying in this manner makes for a much more attractive offer given the strong demand right now for vacation homes.”