Luxury Second Homes A Bright Spot Rate-lock data shows Osceola County second-best market in the nation

By Christine Stuart, Editor, Florida Originator Magazine

The country’s housing market is experiencing a downturn, but the luxury second-home market saw big gains last year with Osceola County, Florida, in the number two spot. Following up at the number four spot was Indian River County, Florida.

According to Pacaso, a real estate platform that helps people buy luxury second homes, the average home price in Osceola County last year was $1.65 million. Just south of Orlando, home to the city of Kissamee, the county saw a 6.1% increase in rate locks in 2022. Its close proximity to Florida’s East Coast beaches is another selling point.

The average luxury second-home price in Indian River County was $1.73 million. Home to Vero Beach on the Atlantic Coast, the county saw a 2.8% increase in rate locks.

The percentage of rate locks in Osceola County was 26.8% as of late 2022. Indian River was close behind at 26.4%. To determine the top U.S. markets, Pacaso analyzed second-home mortgage rate lock data — an indicator of second home buying activity.

“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,” Pacaso CEO and Co-Founder Austin Allison said.

“High-net-worth buyers are not as reliant on financing, so they might be less deterred by rising rates, and we hear a lot from our buyers that they don’t want to wait for perfect market conditions — they are ready to enjoy the benefits of a second home now.”

However, the luxury second-home market isn’t going at warp speed as it was in 2020 and 2021. In the third quarter of last year, Picasso laid off about 30% of its workforce citing declining prices for luxury second homes and an unstable economy in which a “global recession now seems likely” as reasons for the move.

But there are a few places still bucking that trend and one of them is Osceola County.

A previous report from the company about attitudes of second home buyers found that two-thirds of them want the commute to be four hours or less to their second home and 87% want to drive it. For loan originators that means your potential client might be closer than you think. b

Top 10 markets with biggest increases in share of luxury second home rate locks