Luxury Second Homes A Bright Spot

Rate-lock data shows Osceola County second-best market in the nation

Second homes bright spot
News Director

The average luxury second-home price in Indian River County was $1.73 million. Home to Vero Beach on the Atlantic Coast, the county saw a 2.8% increase in rate locks.

The percentage of rate locks in Osceola County was 26.8% as of late 2022. Indian River was close behind at 26.4%. To determine the top U.S. markets, Pacaso analyzed second-home mortgage rate lock data — an indicator of second home buying activity.

– Pacaso CEO and Co-Founder Austin Allison

“Despite a national cooling in residential real estate, we’re finding that the luxury real estate market is still in a league of its own,” Pacaso CEO and Co-Founder Austin Allison said. “High-net-worth buyers are not as reliant on financing, so they might be less deterred by rising rates, and we hear a lot from our buyers that they don’t want to wait for perfect market conditions — they are ready to enjoy the benefits of a second home now.”

However, the luxury second-home market isn’t going at warp speed as it was in 2020 and 2021. In the third quarter of last year, Picasso laid off about 30% of its workforce citing declining prices for luxury second homes and an unstable economy in which a “global recession now seems likely” as reasons for the move.

Luxury Second Homes

But there are a few places still bucking that trend and one of them is Osceola County.

A previous report from the company about attitudes of second home buyers found that two-thirds of them want the commute to be four hours or less to their second home and 87% want to drive it. For loan originators that means your potential client might be closer than you think.

This article was originally published in the Florida Originator March 2023 issue.
About the author
Christine Stuart is the news director at NMP.
Published on
Mar 01, 2023
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