Important data about rates changing primary and secondary home sales.
Have you ever been confused by a facet of the housing market? It can be complex, so it is my goal to help you all understand it better. To do this, today I am here to talk about primary home sales vs. secondary home sales. The trends with this have been changing, and I have a theory as to why.
Most people think that primary home sales have always outpaced secondary home sales, but that’s not necessarily true. During the pandemic, there was a time when it was the opposite. However, then 2023 started, and secondary home sales plummeted.
“The trends in primary and secondary home sales have been changing.”
One thing to note is that I do not believe this indicates a problem in the market or an impending crash. People still want secondary homes, but something is holding them back. The factor that is slowing down secondary home sales is interest rates.
When people are looking for a home to buy, and interest rates go up, that affects how much they can afford. Therefore, their price range changes, not whether or not they want to buy a house.
With secondary homes, most people who own them want to find a way for them to pay for themselves and make a little profit. This is harder to do when rates are high. Also, this effect is more in the mountains than in the midlands of South Carolina.
This information will help you better understand this phenomenon. If you have any further questions or want my help buying a home, don’t hesitate to reach out. You can call or email me anytime, and I would love to talk to you.
