Homes in several vacation destinations are taking nearly twice as long to sell as the typical US listing, according to a July 30 analysis of vacation-home markets. In June, the median listing spent 103 days on the market in Key West–Key Largo and 102 days in Naples–Marco Island, compared with 53 days nationally.
The slowdown comes even as second-home mortgage activity begins to recover. A separate analysis released July 28 found that second-home originations rose 4.1% in 2025, their first annual increase in four years. Primary-home mortgages increased 1%.
The two reports point to a selective market rather than a broad vacation-home rebound. Affluent buyers are borrowing again, but long marketing times and frequent price cuts in some destinations are giving them more leverage over sellers.
Who is buying second homes
About 85% of second-home mortgages went to high-income borrowers, whose median income was approximately $294,000. The typical mortgaged second home was valued at $515,000, compared with $395,000 for a primary residence.
The increase therefore reflects a relatively narrow buyer pool that is better positioned to handle elevated financing and ownership costs. It does not indicate a broad revival across vacation destinations or price points.
Results also varied widely by location. Second-home originations rose 13% in the New Brunswick, New Jersey, metro. They declined in Las Vegas, Orlando, Tampa, and Miami.
Agents still need local inventory, days-on-market, insurance, association-fee, and rental-rule data before advising clients. A national increase in mortgage originations may have little bearing on conditions in an individual beach, mountain, lake, or desert community.
Where vacation-home buyers have leverage
June 2026 listing data shows that some vacation markets remain slow despite the financing uptick. Homes spent a median of 103 days on the market in Key West–Key Largo and 102 days in Naples–Marco Island. The national median was 53 days.
Price cuts were also common in several smaller recreation markets. About 30% of listings in Detroit Lakes, Minnesota, had reduced their asking prices. The share was approximately 26% in both Fergus Falls, Minnesota, and Ludington, Michigan.
Those figures do not make every vacation destination a buyer’s market. They show where agents should examine seller motivation, listing history, recent comparable sales, and carrying costs before recommending an offer strategy.
Insurance premiums, property taxes, HOA fees, maintenance, and special assessments can substantially change the monthly expense. Agents should also verify local short-term-rental rules before including projected rental income in a buyer presentation.
Before advising a vacation-market client, agents should review:
- Active inventory and months of supply
- New listings and pending sales
- Median days on market
- Share of listings with price cuts
- Recent closed sales and seller concessions
- Insurance, HOA, and assessment costs
- Short-term-rental restrictions
Buyers who paused their searches may now find more choices and negotiating room than they had during the pandemic. Sellers still need to price against current closed sales rather than 2021 or 2022 expectations.
The increase in second-home borrowing shows that some affluent buyers are returning. Whether an individual transaction works will depend on local supply, carrying costs, property condition, and permitted use.