Last Updated on September 29, 2022
Allen Tate President & CEO Pat Riley shares insights into thriving second home market
Fall is in the air – and what a perfect time for a getaway to the beautiful North Carolina mountains.
For many people, those vacation destinations have turned into second home retreats. Second home buyers are looking for solid investments, homes for future retirement, and a safe place to escape and unwind.
“The second home market is absolutely on fire,” said Allen Tate Companies President and CEO Pat Riley in the September edition of Carolinas Market Update.
Prior to the 2007 recession, appreciation rates and demand for second homes in the Carolina mountains lagged, Riley said. Even post-recovery, the second homes market was more than a year behind the primary residential markets.
So what’s behind this elevated demand?
“The North Carolina mountains are attractive to buyers who make their primary home in the Carolinas, but also to buyers from feeder states,” Riley said.
Cashiers and Highlands, in the southwestern corner of North Carolina, are fed by the Greenville, SC region but are dominated by Georgia and Florida folks, retreating to the cooler temperatures in the summer months.
Asheville – often billed as “Austin, TX east of the Mississippi”– is now attracting visitors and buyers from across the country. Blowing Rock, Boone, Banner Elk, and Linville are all go-to mountain destinations convenient for many North and South Carolina residents.
Not surprisingly, the second homes market is most attractive when the economy and the investment world are healthy.
“Today, we are enjoying both, along with a heavy dose of post-COVID. People want a place to retreat. Their stock market portfolio looks good, and remote working options are common. Additionally, while the second homes market has long been dominated by cash buyers, the percent of mortgages has grown as real estate investment options have diversified,” Riley said.
A second home is also a strong investment option. The flourishing online rental market – VRBO, Airbnb, etc. – provides a steady income stream for a second home, or when market conditions change, Riley said.
“If a second home peaks your interest, we are ready to help you find it. With offices in Highlands and Cashiers, as well as Boone and Blowing Rock, Allen Tate can turn your weekend getaway into a long-term relationship,” Riley said.
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle, High Country, Highlands/Cashiers and Upstate S.C. regions. It is produced every other month by the Allen Tate Companies and features information, statistics, trends, and predictions about the real estate market in North and South Carolina.