Whether you’re buying or selling, staying up-to-date with the beach home market is important. To give you a better understanding, Glenn Phillips, CEO of Beach Homes Realty, shares some of his thoughts.
- Inventory Growing (Selection!). Beach home inventory has steadily increased over the last several months. This is good news for buyers as it means they have a larger selection of houses. This trend should continue through the fall.
- Mortgage Rates “Sort of” Irrelevant. With discussions around decreasing mortgage rates, it isn’t necessarily the same with beach homes. Cash purchases make up over half of the beach home transactions in the country. For these types of properties, mortgage rates are more of an indicator of the economy to buyers instead of a deal breaker.
- Buyer Demand Strong but Hesitant.
- Discretionary. People in this market don’t have to buy or sell their beach homes. The discretionary nature of beach homes means people are particular and wait for good prices.
- Selective. Beyond price, buyers will wait for their perfect dream home. Since they don’t have to buy a beach house, it may be several years between the first contact and transaction.
- Distracted: Election, Holidays. During presidential election years, buyers become too distracted to purchase beach homes. Additionally, Thanksgiving and Christmas cause buyers to be too busy to shop for beach homes.
- Realistic Transactions Move Quick! While inventory has grown, any home that’s priced appropriately for the market moves very quickly. Buyers are still out there in this busy market, and a well-priced home can help them get through their distractions.
While it may be a slower fall, there is still growth compared to last year in the beach real estate market. 2025 should see an increased tempo in the market but not necessarily accelerate home prices. Visit beach-homes.com to connect with agents ready to help you buy or sell your beach home.