In addition to being a top destination for vacationers and retirees, Florida is also one of the top locations for second home purchases. Also known as vacation homes, many Americans look to The Sunshine State to have a getaway at their disposal whenever they need it. During the pandemic, more Americans have decided to purchase vacation homes in Florida and elsewhere throughout the country. However, recent sales trends may be indicating a slowdown in the second home market.
A look at the numbers
As of July 2021, demand for second homes fell 21% year-over-year. Interestingly, this marks the second consecutive month of year-over-year declines in this market. It should be noted that this follows 13 months of surging sales. In addition, the demand for primary home purchases also fell by 4% year-over-year in July. This marks the first time the growth rate for second-home demand fell behind that of primary homes since April 2020.
It is assumed that skyrocketing home prices have caused prospective second-home buyers to reconsider their plans to purchase a second home. Of course, it is largely expected that home prices across the entire market will plateau for the near term.
Overall, the demand for second homes remains well above pre-pandemic levels. It is important to note that the year-over-year comparisons are somewhat misleading due to the record level of demand that we have seen over the past year. Given the increased prevalence in remote working environments, it is widely assumed that strong interest will persist in the second home market. In fact, many builders are responding by focusing on building more homes as opposed to commercial structures such as hotels and lodging. Moving forward, locations such as Florida will continue to lead the way in second home sales.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. At Live South Florida Realty, Inc., we have been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!