Vacation home sales cooled this summer, but prices were still high.
Overall, second home foreclosure rates, a proxy and leading indicator of sales, fell 26.6% year-over-year over the summer as buyers cut back on fuel purchases. pandemic, according to data compiled by second home startup Pacaso. Of the top 50 second home markets, 46 recorded a decline in transactions.
Pacaso selected the top 50 vacation home markets by identifying counties where the percentage of seasonal homes and median home value were at or above the top 20th percentile.
At its peak, in the fall of 2020, vacation home sales grew more than 103% year-over-year.
Vacation home prices were still scorching. All major second home markets except one, Lee County, Florida, where Sanibel Island is located, saw double-digit price increases this summer.
Hawaii’s Kauai County stood out, with massive gains in both second home rate foreclosures and prices. The foreclosure rate for second homes rose 23.5% and prices rose 83.3%. It is the only one of the top 50 second home markets with a median price of over $ 1 million.
Blocking rates on the estimated 10 million vacation homes in the United States remain above pre-pandemic levels, Pacaso said. Second home rate locks accounted for 4.3% of all rate locks in the summer of 2021, compared to an average quarterly market share of 3.8% from 2017 to 2019.
Pacaso, which makes it easier to buy luxury second home ownership by allowing potential owners to buy as little as an eighth of multi-million dollar properties, reached a valuation of $ 1.5 billion in just a year. In recent months, it has drawn criticism from disgruntled owners who say the startup is peddling a fake luxury experience and prioritizing profits over the community.
The company expanded to South Florida in September and plans to expand its business overseas, starting with Spain later this year.
The company counts SoftBank, Greycroft, Global Founders Capital, Crosscut and 75 & Sunny Ventures among its largest investors.