Have you noticed more of a trend for second home purchases? There is a much higher interest in second homes now. COVID forced us to live differently. We realized we could work remotely, so why not mix it up? Second-home sales rose 16% in 2020 and are up 33% through April of this year. The median price for second homes has increased from $416,100 in 2020 to $467,100. Buying second homes has become one of the fastest-growing trends in the US. More than 30 million Americans will enter the second home market within the next decade.
Who are the buyers of second homes?
Many people believe second homes are just for high-net-worth or retired individuals, but that is not the case. Second-home sales are soaring, and inventory has shrunk in every price category. Buyers purchase properties in areas of the country that were not previously second home destinations but offer lifestyles different from their home base. Often, the location is within a one-day drive from their primary home. Many buyers are purchasing something smaller now in an area they love to get a toehold in the market. This strategy leaves the buyer well-positioned to upgrade within a very competitive market eventually. “We also see folks purchasing smaller homes that can be rented short term in order to get a toehold in the community, giving them an opportunity to be in the market now without carrying the full cost of second homeownership,” Thomas Maybank, Realtor with the Ussery Group in Palmetto Bluff, SC.