The sales to beach condos in Boca Raton, a seasonal town, have been dipping in recent years due to escalating housing costs. A report from Redfin has indicated that home sales in these types of towns (where at least 30% of properties are strictly part-time) fell 3% year-over-year in July, compared to a 1% fall in non-seasonal areas. This trend in decline of seasonal home sales started from February.
Redfin Chief Economist Daryl Fairweather explains, “Vacation markets are cooling faster than other places because second-home demand is sensitive to high housing costs. When mortgage rates are high and the cost of living is high too, buyers prioritize their primary residence over a ski chalet or beach house."
However, prices remain steep in these areas. The median home price in seasonal towns was $583,000 in July, compared to $451,000 in non-seasonal areas across the U.S.
On the upside, for those who can afford it, there are plenty of people looking to offload their rental properties, particularly in Florida. Cecilia Cordova, a Redfin Premier agent in Miami, conveys that "the local condo market is brutal. We have so many people selling condos that they have been using as second homes. Now, people who purchased coastal condos in 2020 or 2021 are returning to live in New York or Boston full-time, they’re no longer working remotely from the beach."
Unfortunately, dwindling purchases are a predominant issue. Miami and Fort Lauderdale are experiencing a faster drop in pending home sales than any other U.S. metro, Redfin found. Cordova advises, "Now is the time to nab a condo that’s directly on the beach with an ocean view. If you couldn’t afford it a few years ago, you may be able to afford it now."