How Remote Work May Improve Vacation Home Sales
2020 taught us a lot: how to wash our hands properly, how important toilet paper is to our community, and, not surprisingly, that home may be more than where the heart is. For many of us in 2020, home also became a school, an office, a yoga studio, a bakery, a gym, and sometimes even a doctor’s office. With these changes, especially with remote work becoming more and more popular, there’s a good chance more people will want to live in areas they love, versus one that makes getting to work convenient. This is why we believe a rise in remote work may lead to a boost in vacation home sales.
The Rationale
It makes sense, most people who need to go into work choose to live in places that simplify their commute, which is why real estate in big cities like San Francisco, New York, or Chicago is always at a premium. But if people are no longer required to go into the office every day, that makes the decision of where to live almost limitless. For those who are able to telecommute, whether part or full time, their location is no longer an impediment to living in a mountain house, on the beach, or in a lakefront property; making one person’s vacation home another’s primary residence.
Think about it, if you have to travel into work daily, then you’re going to prioritize the commute over location. But if you’re only going into the office twice a week (or not at all), then a longer drive is bearable, hey, it may even be enjoyable for some! And the added bonus is that with fewer people commuting in general, that means the trip itself isn’t as painful; less traffic, fewer accidents, and less fist-shaking at drivers who still don’t know the proper way to merge onto a highway.
The Data
According to Gay Cororaton, Senior Economist and Director of Housing and Commercial Research at the National Association of Realtors (NAR), “Working from home is a positive factor in demand for vacation homes.” Cororaton continued, “Sales in vacation-home counties increased 48% on average year over year in the third quarter; overall, 81% of vacation-home counties saw a year-over-year sales increase.” This is huge news for those of us in the market to sell our vacation homes. In fact, vacation homes are selling fast! According to the REALTORS® Confidence Index Survey, 68% of homes sold in less than a month—that’s over double what usually sells in that amount of time.
The best part? As is always the case, with an increase in demand comes an increase in pricing. According to NAR, “In the third quarter, prices in vacation-home counties rose by about 32% year over year.” If you have a vacation home you’re not using, that has been a source of stress, or that you just don’t know what to do with, then it may be time to sell. This might be a valuable opportunity to take control of the market, and get a juicy return on interest that you can put to better use down the line.
As always, Metro REIG is here to help. We’re a full service brokerage with the expertise to guide you as you navigate the world of vacation home sales. Why not set up a free consultation with us? Let’s chat and see how we can work together.
