August Luxury Market Report Summary: The Changing Trends of Second Home Markets

Whether you’re a brand new luxury professional figuring out how to work with luxury clients this year, or you’re an experienced professional looking to breathe life back into a quiet farm… Second home markets may hold your answer. As we coast into the final quarter of the year, we’re seeing some significant shifts affecting these markets, which are often considered to be second home or vacation communities. For most successful clientele, with COVID-19 lockdowns came the stark realization that their busy, urban primary residence simply wasn’t where they wanted to spend the majority of their time. As a result, many second home markets saw a healthy uptick in population this year. In August’s Luxury Market Report, we review five second-home markets that showcase the effect of the COVID-19 pandemic, and the high net worth’s purchasing impact on these communities. From east to west, we reveal insights regarding…

• The Hamptons, New York
• The Palm Beaches, Florida
• Coeur d’Alene, Idaho
• Lake Tahoe, California
• The Hawaii Islands, Hawaii

And are joined by:

• Michael Daly of Douglas Elliman Real Estate (Hamptons)
• Liz Armstrong, Director of Luxury Sales for The Keyes Family of Companies (The Palm Beaches)
• Mark Montgomery of John L Scott Real Estate (Coeur d’Alene)
• Trinkie Watson of Chase International (Lake Tahoe)
• Anton Steenman, President & CEO of Elite Pacific Properties (Hawaii)

Here’s a quick snapshot of each growing second home market:

Second Home Market #1: The Hamptons, NY

The Hamptons were one of the first second home markets to see a rise in residents once lockdown seemed inevitable. Michael Daly of Douglas Elliman Real Estate tells us demand is up 50% year to date between May and July, and as a result, certain industries in the area are also seeing a pleasant boom. Industries such as…

• Public service
• Boating
• Propane
• Gardening
• And even upholstery

Daly says these industries typically don’t start seeing a rise in sales til June, but this year’s rush started in April. With that in mind, making professional connections with providers in these industries can make you a more valuable real estate professional for your clients who are headed to this area.

Second Home Market #2: The Palm Beaches, FL

Right now, the rise in residents in the Palm Beaches in Florida is a testament to the fact that luxury doesn’t always refer to price. Affluent clients are happily moving into lower-than-usual price points to enjoy the luxury of more space, more outdoor experiences, and more walkable areas. They’re also enjoying the luxury of an easy move due to the high inventory levels seen pre COVID-19 and are simply willing to make changes later on.

Second Home Market #3: Coeur d’Alene, ID

This lesser-known second home market offers ample outdoor space for new residents and is conveniently settled within a short driving distance from city life. Rife with two sprawling, luxury golf courses, waterfront real estate, and beautiful naturescapes, this area is becoming a popular destination for those looking to escape higher tax rates, traffic, and COVID restrictions-- especially the affluent coming from California, Oregon, and Washington.

Second Home Market #4: Lake Tahoe, CA

Trinkie Watson of Chase International in Lake Tahoe, CA told us in 40 years, she’s never seen a surge in buyers quite like the one she’s seeing this year. She says even though homes are selling almost as soon as they’re listed, it’s still a smart idea to provide a comprehensive online listing that showcases the entire home and the nearby community. She also adds buyers are still, for the most part, making an effort to visit before making their final decisions.

Second Home Market #5: The Hawaii Islands, HI

Unsurprisingly, Hawaii has been another hot spot for COVID-related migration. However, the island has stricter lockdown restrictions than most states. Fortunately, because of its remote location, clients are already used to making buying decisions without a visit. The only hesitation clients may have when relocating to these beautiful islands? Amenities. They want to be sure they and their families have everything they need to work and complete school. For luxury professionals representing this area, a heavy community focus and video marketing are key. Want to join our next Luxury Livestream event to discover more about how to thrive as a professional in today’s luxury market? Take a look at our upcoming schedule to learn more and register.