The number of beach property exchanges and transactions has declined recently. Because of this, you may be wondering where the beach home buyers are. Glenn Phillips shares his thoughts on why this may not be the whole story.
- Modest Market Improvement.
- Inventory is Larger. Month after month, beach property inventory has grown steadily and will continue growing for several months.
- Mortgage Rates. Mortgage rates will likely drop over the next several months as well. Signs of decreased mortgage rates stimulate buyer’s interest.
- Buyer Demand Strong. Buyer demand is still strong, but there aren’t as many transactions. There are several reasons for this.
- Still, Buyers are Waiting On…
- Realistic Pricing. Many beach homes on the market haven’t sold because they have aspirational prices. These buyers don’t have to buy beach homes, so they can afford to wait for reasonable prices.
- Selection. Once overpriced homes are factored out, the selection of houses isn’t quite as broad. Additionally, dream home buyers may search for several years before making a purchase. Most beach home buyers pay in cash, so they are waiting for the selection to become better for this market.
- Election and Holidays. Whether the election outcome will affect the buyers’ purchasing decision or not can distract them from buying a beach home. Similarly, Thanksgiving and Christmas cause a slowing of transactions for beach homes. These distractions cause buyers to temporarily neglect buying a beach home.
Transactions are waiting to happen, and sellers should become more realistic as we head into 2025. Beach home buyers are still there; they are just waiting for realistic home prices. Visit beach-homes.com to connect with agents who will help you navigate beach real estate.