In real estate, it’s always important to keep up with recent trends in the industry. Beach real estate is no different. Glenn Phillips, CEO of Beach Homes Realty, discusses 6 recent trends in beach real estate.
- Mortgage Rate Independent. Several headlines discuss how mortgage rates are stifling real estate. However, many beach home buyers purchase homes with cash. Beach home buyers can afford to buy what they want, regardless of the current economy. This means that mortgage rates have less of an impact on beach real estate.
- Inventory “Issues.” During COVID, beach home inventory became increasingly tight. While the inventory has increased some, it’s not the whole story. The demand for beach homes is high enough that appropriately priced homes sell quickly, preventing further inventory increases. Additionally, “phantom” inventory bloats the beach home inventory numbers. This “phantom” inventory includes overpriced homes that don’t sell.
- Strong But Very Practical Demand. Unlike the COVID buying frenzy, buyers aren’t scrambling to purchase a beach home. Today’s buyers want a better selection and wait for appropriately priced homes that fit their needs.
- Competitive Bidding “Spotty.” The properties getting the most competitive bids are priced appropriately. These homes are neither undervalued nor overpriced. These homes also rarely get competitive bids and are generally sold quickly.
- Aspirational Pricing. Aspirational pricing includes homes listed for the market value during COVID-19. However, the market has since settled down, bringing down prices. Buyers wait for the prices of these houses to decrease before purchasing. While this pricing strategy is decreasing in popularity, it still occurs.
- Multiple Market Shopping. While sellers may think they’ve priced appropriately for their local market, buyers are looking across multiple states and coastlines. This means sellers compete against houses in different markets, not just their own.
Real estate trends are always changing, and beach real estate is no different. Understanding these beach real estate trends can help you sell your home. Visit beach-homes.com to connect with agents who are willing and able to guide you through beach real estate.