But what about the other end of the spectrum?
Luxury buyers are still searching, and when it comes to second homes, ten markets are seeing an uptick in purchases.
2022’s Top 10 Markets for Luxury Second Homes
Pacaso recently released its annual report of the top 10 luxury second home markets across the U.S. The findings were based on mortgage rate lock data and revealed which U.S. counties saw the most significant annual increases in the share of second home mortgage rate locks for homes priced above one million dollars.
“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. We’ve continued to see luxury sales volume growth in many top destination communities across the U.S.”
Here are the top 10 markets for luxury second homes:
1. Washington County, Utah
Home to the famous Zion national park, Washington County saw the biggest annual increase in second home rate locks, up 10.3% from 2021. The average second home price here was $1.3 million.
2. Osceola County, Florida
Osceola County is situated just south of Orlando and is close to Florida’s famous east coast beaches. The increase in second home rate locks was 6.1%, and the average second home price was $1.6 million.
3. Nevada County, California
Nevada County, known for popular destinations like Truckee, is situated in the Sierra Nevada Mountains and is a short drive from the world-class ski resorts of Lake Tahoe. The increase in second home rate locks was 4.5%, and the average second home price was $1.6 million.
4. Indian River County, Florida
Close to one of the most biodiverse estuaries in the Northern Hemisphere, Indian River County saw a 2.8% increase in second home rate locks. The average second home price was $1.7 million.
5. Napa County, California
Known for its hundreds of hillside vineyards, Napa Valley experienced a 2.1% increase in second home rate locks. The average second home price was $2.6 million.
6. Kauai County, Hawaii
Consisting of the islands of Kauaʻi, Niʻihau, Lehua, and Kaʻula, Kauai country experienced a 1.9% increase in second home rate locks, with the second home price averaging $1.9 million.
7. Cape May County, New Jersey
Coming in at #7 is the southernmost county in New Jersey. Cape May County saw a 1.7% increase in second home rate locks, and the average second home price was $1.9 million.
8. Sante Fe County, New Mexico
Sante Fe County, which boasts close proximity to the Sangre de Cristo Mountains, saw a 1% increase in second home rate locks, with an average second home price of $1.7 million.
9. New York County, New York
New York County, which includes New York City, saw a 0.8 % increase in second home rate locks, with an average second home price of $2.5 million.
10. Whatcom County, Washington
Whatcom County, home to North Cascades National Park, saw a 0.3 % increase in second home rate locks, with an average second home price of $1.6 million.
The markets on this list represent counties ranging from well-established destinations, like Napa, to lesser-known luxury spots, like Whatcom.
“What’s interesting here is that many of the counties that saw the largest year-over-year shift toward second home buying activity this year are already regarded as luxury top second home destinations….In previous years, lesser known ‘destination-adjacent’ locations saw the biggest shifts, but this year there’s a mix of established markets and up-and-coming destinations. More modest price growth, and perhaps even price drops in some markets, could be contributing to some buyers turning again to these established locations to find the second home of their dreams.”