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Key Takeaways
- Home sales have declined in U.S. cities where vacation rentals and second homes are prominent, according to a new Redfin report.
- Prices were flat year-over-year in those areas in July, while elsewhere the cost of a home rose 2%.
- Still, the median price of a home in a seasonal town was $583,000, compared to $451,000 in non-seasonal locales.
Beach condos in Boca Raton aren’t selling like they used to.
Home sales in “seasonal” towns (where at least 30% of properties are strictly part-time) fell 3% year-over-year in July, compared to a 1% drop in non-seasonal areas, according to a report from Redfin. In fact, seasonal home sales have declined year-over-year every month since February.
“Vacation markets are cooling faster than other places because second-home demand is sensitive to high housing costs,” Redfin Chief Economist Daryl Fairweather said. “When mortgage rates are elevated and the cost of living is high, buyers are more likely to prioritize their primary residence over a ski chalet or beach house.”
Don’t be fooled, though: A cabin in Aspen still isn’t cheap. The median home price in seasonal towns was $583,000 in July, compared to $451,000 elsewhere in the U.S.
‘Now Is The Time’—Buy That Miami Condo, Agent Says
If you can afford to buy, there is a glut of people selling their rental properties, particularly in Florida, one real estate agent said.
“The local condo market is brutal. We have so many people selling condos that they have been using as second homes, whether it’s a part-time home for their family or a short-term rental or both,” said Cecilia Cordova, a Redfin Premier agent in Miami. “Now, some people who bought coastal condos in 2020 or 2021 are returning to New York or Boston full-time; they’re no longer working remotely from the beach.”
Problem is, people aren’t buying. Pending home sales are falling faster in Miami and Fort Lauderdale (seasonal towns) than in any other U.S. metro, Redfin found.
“Now is the time to nab a condo that’s directly on the beach with an ocean view,” Cordova said. “If you couldn’t afford it a few years ago, you may be able to afford it now.”
