2024 is right around the corner, and many people are wondering what the beach home market will look like throughout the next year. Instead of beach home prices dropping next year, expect them to remain the same, if not slightly increase. Glenn Phillips, CEO of Beach Homes Realty, gives four reasons beach home prices won’t drop in the next year.
- Limited (but improving) Inventory: Property inventory has been limited, although it has been improving over 2023. However, some of this new inventory is “phantom inventory.” Phantom inventory is homes that the seller lists at Covid frenzy-buying prices, even though that time is gone. Some sellers will lower their prices, but there will be more buyers than sellers overall.
- Mortgage Rates (Not Really): Over half of the transactions for beach homes are done in cash. Buyers who can afford a discretionary home, like a beach home, can also afford higher rates even if they have to take a mortgage. They can afford the splurge in order to have their dream home.
- Interested KNOWLEDGABLE Buyers: Buyers today will wait until they find the right beach home, and they won’t pay unreasonable prices. Demand hasn’t decreased for beach homes, keeping prices from dropping.
- Global Unrest: When there is unrest in the world, some people use beach homes as a way to escape the difficulties of the world. They see it as a way to take care of their mental health or spend more time with their family.
Whether you’re looking to buy or sell a beach home in 2024, you should expect prices to remain the same overall. In some markets, prices for beach homes might even slightly increase. Be sure to visit beach-homes.com, where you can find beach specialists who can guide you through the beach market process.