Sales of seasonal homes drops

Homes sold in towns where vacation residences drive much of the housing market fell three percent year-over-year in July, according to a report.

That compares to a one-percent nationwide decline in home sales in towns where seasonal homes are not a major factor, Redfin reported.

In seasonal towns, sales have been declining since February.

Redfin, a real estate company based in Seattle, defines a seasonal town as one in which more than 30 of the housing is used as a vacation home, or occasionally. About nine percent of all home sales in the United States are in seasonal towns.

“Sales are declining faster in vacation destinations because they’re often second homes or investment properties, which are typically the first to be cut when affordability is tight,” a summary of the report states, “It’s still tough for the typical American to afford a home.”

The Inland Empire’s best-known vacation destination is hurting.

“The rental market has slowed down because remote work has waned, and because short-term rental regulations have strengthened,” said Nikkolene Byron, a Redfin Premier agent in Palm Springs, in the statement. “Some people are offloading those Airbnbs because they’re not pulling in as much income as they hoped.”