1023 ET - The number of homes sold in seasonal towns, those where vacation demand drives the housing market, fell 3% year-over-year in July, according to Redfin. That's compared to a 1% decline in non-seasonal towns. In seasonal towns, home sales have been declining on a year-over-year basis since February. Roughly 9% of all home sales in the U.S. 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. Redfin says that mortgages for second homes in the U.S. dropped to their lowest level in at least six years in 2024. While demand for all homes fell last year, the drop was bigger for second homes than for primary residences because they're more expensive, they're not a necessity, and the economy is uncertain. (chris.wack@wsj.com)

(END) Dow Jones Newswires

September 02, 2025 10:23 ET (14:23 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.