Buyers get serious about vacation homes

TRD New York /
Jul.July 25, 2011 01:12 PM

Brokers are reporting more and more inquiries into vacation homes than they have in years, the Wall Street Journal reported, and now may indeed be the time to buy.

The median sales price for a second home was $150,000 in 2010, down 11 percent from 2009 and about 25 percent from 2006, according to data from the National Association of Realtors, but prices have held up better on the luxury end. “At the top of the market, particularly luxury homes, prices have proven very elastic, and have sprung upward quickly,” said Douglas Duncan, chief economist at Fannie Mae.

Buyers are paying attention: On Palm Beach Island, sales were up 50 percent in the year ending June 30, in the Hamptons, transactions jumped 59 percent and in Aspen, sales were up 10 percent. Foot traffic is also seeing an uptick. In Vail and Palm Beach, it increased by at least 30 percent this year, according to local real estate agents.

In places like Miami, Fla.,  bargains abound as sellers slash their asking prices or accept less to unload foreclosed properties. In March, a three-bedroom home on Palm Beach Island, Fla., listed for $4.6 million sold for only $2.5 million, the Journal said.

Many second-home buyers are cash-fluid enough to pay in cash, avoiding the consuming mortgage process. Last year, 36 percent of vacation-home transactions were all-cash deals, a jump from 29 percent in 2009. [WSJ]


Related Articles

arrow_forward_ios
NAR CEO Bob Goldberg (iStock; NAR)

NAR’s motion to dismiss broker fee lawsuit shut down

NAR’s motion to dismiss broker fee lawsuit shut down
Sales of existing homes in the U.S. hit a 14-year high last month, according to a new report. (iStock)

US home sales hit 14-year high

US home sales hit 14-year high
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
House Island in Portland, Maine

A Maine island marketed as a “safe and secure haven” wants $250K per week

A Maine island marketed as a “safe and secure haven” wants $250K per week
Long live NAR: Agents won’t defy powerful trade group in pocket listings spat

Long live NAR: Agents won’t defy powerful trade group in pocket listings spat

Long live NAR: Agents won’t defy powerful trade group in pocket listings spat
Vacasca CEO Matt Roberts (middle), Silver Lake's co-CEO’s Egon Durban (left) and Greg Mondre (right)

Vacasa gets $108M lifeline from Airbnb’s rescuer

Vacasa gets $108M lifeline from Airbnb’s rescuer
CAP: NAR President Vince Malta and TAN founder David Faudman (Credit: YouTube, NAR, iStock)

Pushback over going “clear”: NAR sued for pocket listing ban

Pushback over going “clear”: NAR sued for pocket listing ban
Citydwellers fleeing coronavirus have descended on rural communities across the Western U.S. (Credit: iStock)

Urbanites are fleeing to rural communities out West

Urbanites are fleeing to rural communities out West
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...