As you look across the economy, you will see various sectors and technologies benefiting from shifts due to the pandemic. In real estate, we are seeing various sectors of the market benefiting as well. In particular, the vacation home market has been outpacing the overall housing market. According to the 2021 Vacation Homes County Report by the National Association of REALTORS® (NAR), sales of vacation homes have surged during the COVID-19 pandemic.
What the data shows
- Vacation home sales rose by 16.4% last year compared with an overall growth in existing-home sales of 5.6%.
- Year-over-year sales of vacation homes also jumped 57.2% compared to the 20% growth in total existing-home sales during the same period.
- From January through the end of April 2021, all-cash sales increased to 53% of all vacation home purchases, up from under 50% in past years.
- From January through the end of April 2021, all-cash sales comprised 22% of all existing-home sales.
A shift in migration patterns
Historically, the vacation home market has been dominated by affluent buyers with the financial resources to own multiple properties at once. Although this is certainly the case for many of these buyers, the pandemic has also resulted in more first-time home buyers purchasing in vacation destinations. The reason for this is the significant increase in remote working environments being offered by employers. Many home buyers, including first-time home buyers, have quickly realized that they can now move to their favorite vacation destinations permanently and work remotely. Needless to say, this new segment of home buyers has driven up the demand for homes in traditional vacation locations significantly.
It goes without saying that South Florida is one of the most popular vacation destinations in the country. Furthermore, the number of vacation home sales in the area is one of the highest in the country. A tropical climate, a thriving economy, and no state income tax are just a few reasons why the South Florida market is so sought after. Add in the ability to work remotely and you have the perfect storm for the South Florida vacation home market.
As if home inventories were not tight enough in South Florida for primary residence home buyers, the rise in vacation home buyers is only adding to the stiff competition. This increased demand has resulted in continued bidding wars and thus rising prices.
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!