12 Jan Vacation Market Saw A Positive 2010
Local sales data suggests that the vacation home market is coming back in a big way, this according to recent WSJ.com article.
The NAR believes that the positive turnaround stems from a shift in consumer attitudes. As 2010 saw slight improvements in the economy, economists believe that wealthier buyers regained some of the lost confidence of the recession. While, the positive swing in the market should be greeted with jubilation, the data is not entirely concrete at this moment. The statistics for nation-wide vacation home sales are not tracked throughout the year. The NAR conducts a survey and the results aren’t available until March of this year.
According to the article, 1 in every 10 homes sold in 2009 was a vacation home. The results for 2010 are expected to be greater. A key characteristic to the vacation home market has to do with pricing, not demand. It’s obvious that demand is increasing, but prices are still not the bargains that many cash buyers are looking for. Experts believe that sellers are able to maintain prices due to a lack of urgency compared to primary homes sellers.
Even as the market’s conditions improve, cash buyers still hold the keys to the market. Experts believe that the time to buy is now if you have the cash or can qualify for a loan. An improvement in the market is welcomed news, but as we enter 2011 some experts predict a worsening housing market with the addition of more foreclosures. If the vacation market is based on the attitudes of consumers, it’s pretty fragile. It will be interesting to see how those consumers handle the predicted 10% decrease in home prices for their existing homes in the coming year.