Things are looking pretty promising for those who want to buy a second home. After taking quite a beating after the housing bubble burst, the vacation home market is finally showing some signs of improvement.
Although experts are reluctant to say we’re completely out of the woods, reports of bidding wars in second home hot spots coupled with low interest rates and dwindling inventory have made once desolate markets attractive to investors. While rates are maintaining record lows, the increased demand for homes and rising values has created a unique window for bargains. This opportunity has, in turn, created a sense of urgency among consumers and appears to have helped raise buyer confidence.
According to recent data from the National Association of Realtors (NAR), sales of vacation properties fell 56% between 2006 and 2010, but climbed 7% in 2011. Despite this jump, prices have remained soft, with the median sale price on vacation homes in the U.S. dropping 19% to $121,300 in 2011. [Read more...]