The national real estate market has certainly seen some changes over the last few months. Interest rates have risen, buyer demand has decreased, and home buyers are rethinking their priorities. But one thing that hasn’t changed much is the luxury second-home market. According to a recent AP News article, transactions for luxury second homes increased 25 percent year-over-year in the second quarter of 2022. What’s more, luxury second-home sales have increased by 235 percent since the beginning of 2020. Let’s take a look at what’s fueling this trend and how it impacts buyers and sellers of luxury second homes in Rancho Santa Fe.
Why do luxury second homes remain popular?
There’s no single reason that the luxury second-home market remains strong while other segments of the market are faltering. One factor that is influencing this trend is that affluent buyers tend to be shielded more from the impacts of inflation and rising interest rates. According to the National Association of Realtors, more than half of all second-home buyers pay all cash for a home. Another factor is that real estate is seen as a more stable investment than the current stock market. This means that more affluent buyers are looking to purchase a second home to add to their portfolios.
Where are people buying luxury second homes?
“Location, location, location” is often heard when it comes to real estate. But location matters even more when it comes to luxury second homes. After all, second homes are often used as a retreat, a place to get away from the hustle and bustle of everyday life. For this reason, the hottest luxury second-home markets tend to be in areas that provide year-round activities. Locations close to beaches are also popular, as are those that are close to large cities. Having plenty of space to relax and unwind is essential, but so is the ease of getting to and from the second home.
What does this mean for buyers and sellers of luxury homes in Rancho Santa Fe?
Buyers and sellers of luxury second homes in Rancho Santa Fe can feel confident in our current market. The luxury second-home market in particular remains strong, and luxury real estate continues to be a good investment for those looking for a secondary residence. In addition, Rancho Santa Fe is an excellent location for a second home. Our beautiful community offers plenty of space, gorgeous natural vistas, and close proximity to the Pacific Ocean and its glorious beaches. It also offers temperate year-round weather that makes it possible to enjoy outdoor living 365 days a year. We’re also conveniently located close to both San Diego and Los Angeles. This makes traveling to and from Rancho Santa Fe a breeze!
Contact the Lucy Kelts Collection today
Are you interested in learning more about buying or selling a luxury second home in Rancho Santa Fe? Then contact the Lucy Kelts Collection at 858-775-8843 or [email protected]. Our team of experts is ready to sit down with you personally to discuss all your real estate needs. Contact us today to get started!
