The second home market was down 3% in July

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Sales of homes in vacation-driven towns fell 3% in July, compared with a 1% dip in non-seasonal markets.
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Inventory in seasonal towns surged 17% year over year as demand for second homes cooled.
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Prices in vacation destinations have flattened, with the median sale price holding steady at $583,000.
If youve ever thought about buying a vacation home or living in a resort town, this might be a good time to go shopping.
Sales of homes in U.S. vacation hotspots are cooling faster than in other parts of the country, according to a new report from Redfin. The number of homes sold in seasonal towns, those where at least 30% of housing is used only seasonally or occasionally, fell 3% in July compared with a year earlier. Thats triple the 1% decline recorded in non-seasonal towns.
The slowdown has been underway for months: home sales in seasonal markets have posted year-over-year declines since February. Roughly 9% of all U.S. home sales take place in these vacation-driven towns.
Second homes and investment properties are often the first to get cut when affordability tightens, Redfin economists noted. Mortgage rates remain high, and many Americans are prioritizing primary residences over discretionary vacation properties.
Vacation markets are cooling faster than other places because second-home demand is sensitive to high housing costs, said Daryl Fairweather, Redfins chief economist. When mortgage rates are elevated and the cost of living is high, buyers are more likely to prioritize their primary residence over a ski chalet or beach house.
Redfins data shows demand for second-home mortgages dropped to their lowest point in at least six years in 2024. Pandemic-era remote work flexibility has also faded, meaning fewer Americans can justify splitting time between a primary home and a vacation property.
Florida is ground zero
Florida, home to more than a third of the seasonal towns in Redfins analysis, is experiencing one of the steepest cooldowns. Pending sales in Miami and Fort Lauderdale two major vacation markets are dropping faster than in any other large U.S. metro area.
The local condo market is brutal, said Miami-based Redfin Premier agent Cecilia Cordova. She noted that many condo owners who bought during the pandemic boom are now selling, in part due to high HOA fees and dwindling rental returns. Some people who bought coastal condos in 2020 or 2021 are returning to New York or Boston full-time. They want to sell instead of becoming landlords.
Investors who purchased vacation homes to cash in on platforms like Airbnb and VRBO are also retreating. The combination of tighter regulations, softer demand from tourists, and market saturation has made renting out second homes less lucrative.
Some people are offloading those Airbnbs because theyre not pulling in as much income as they hoped, said Palm Springs agent Nikkolene Byron.
With sales slowing, listings are piling up. The supply of homes for sale in seasonal towns surged 17% in July, compared with a 14% rise in non-seasonal towns. Still, new listings in vacation hotspots are actually down 3%, as some homeowners wait out the market rather than sell into weakening conditions.
Posted: 2025-09-03 10:05:50