The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets

By Michelle D. Formica, Manager, Marketing Services, The Long & Foster Companies.

Oct 201903

The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets

By Michelle D. Formica, Manager, Marketing Services, The Long & Foster Companies.

In Luxury Portfolio International’s most recent research report, The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets, the luxury real estate network explores the current state of the second home market, as it relates to affluent consumers.

Here are a few notable results from the report.

Who is considering buying and selling luxury second homes?
Buyers, age 40 and younger, are taking over the luxury second home market. Buyers and sellers considering luxury second homes have similar demographic and financial profiles. This group has high assets for their age – about half of the qualified consumer market is under the age of 40, yet their purchase goals are in the millions of dollars. For most, this is not their first time purchasing a second home.

What is the current state of the resort and second home market?
Many buyers who are purchasing a luxury second home are not interested in selling their existing second homes, but instead are merely looking to add to their portfolio. Therefore, there are more buyers than sellers in this market. While many sellers are also buyers, buyers are not necessarily sellers. Buyers are more confident in the market than sellers with more than half believing now is a good time to purchase a second home, while comparatively few think it is a good time to sell.

What are second-home buyers looking for?
Affluent consumers are focused on physical and emotional wellness, as well as intellectual, social and spiritual wellness. Therefore, resort and second home buyers are seeking amenities that address these needs.

Because there are more buyers than sellers, the inventory for luxury properties is tight, increasing home values. You can read the full analysis here.

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