There have been several headlines recently concerning real estate news. However, the news may not be the same for beach real estate. Glenn Phillips, CEO of Beach Homes Realty, discusses why real estate headlines don’t reflect beach markets.
- Location, Location, Location: Location heavily affects beach real estate. The beach location charges a different premium and generates different demand than typical properties.
- “Phantom” Inventory: While inventory for beach homes has increased, many homes aren’t selling. Appropriately priced beach homes sell quickly. However, many overpriced homes sit on the market. So, the inventory of sellable homes has not increased.
- Discretionary Property: Since beach home buyers don’t need to buy a beach house, it’s a discretionary property. This type of property influences the demand for beach homes differently. Buyers can wait for months or even years before buying a beach house.
- More Second Homes: For buyers purchasing a second home, the demand is different from that of other buyers. For instance, there may be more demand among second-home buyers since they don’t need to sell another property before buying a beach home. This means they can act quickly when they find the house they want.
- More Investment Properties: Many beach home buyers buy these homes with the intent of renting them out. Because of the high profit potential, demand is affected differently than the usual types of property.
- Mortgage Rates Not as Influential: Unlike primary residential homes, beach real estate transactions are primarily cash. This means beach home buyers aren’t as affected by mortgage rate changes.
Whether you’re buying or selling at the beach, beware of the national headlines about real estate. Beach property is different from other types of real estate, so it’s less affected by industry changes. Visit beach-homes.com to find agents who will help you understand the beach real estate market.