Tuesday, January 18, 2011
According to the Wall Street Journal, vacation home sales are on the rise, despite a decline for existing home sales.
We all know and have been told that the economy is bad and that it won’t pick up again for another year or so. But this year, a surprising trend has happened; because prices are dropping as desperate home owners try to get rid of their listings, hopeful second home owners looking for a nice spot in their favorite vacation spots are coming out of the wood works. Its a buyer’s market out there, and vacation spots are the prime real estate.
What is to cause for this sudden trend? Perhaps the lure of an investment property. The WSJ accredits it to “gains in the stock market and an improving economy, which have made wealthier Americans more upbeat about the future.” With prices dropping, it has become enough incentive to promote Buyers to come forward and buy the second home of their dreams. What better vacation spot than Steamboat, I ask?
In 2009, 1 in 10 home purchases were for vacation homes. Some say that in the past, vacation home prices were over inflated, and the decline of the economy is putting prices back to where they should be. From the trends, buyers agree. The WSJ notes however ,that some home owners selling houses that are vacation homes won’t budge on their initial selling price because they aren’t in a hurry to move to a new location as primary-home owners may be. So while they may be sitting on the price they think their home is valued at, they have to expect that their vacation home will not have as quick a transaction as a seller willing to negotiate on price.(What’s the value of your home?) Buyers know that prices are dropping, and in this economy, many aren’t willing to pay full price.
The great thing about Steamboat Colorado is that a purchased vacation home is probably one of the best investments you can make. The resort is only getting bigger; I’ve heard rumor of future plans of expansion into the back bowls past North Saint Pat’s and East Face. So while you not only enjoy the benefits of visiting a growing ski town, you also have the benefit of renting it out the rest of the year to our ever moving source of seasonal workers. (Has anyone seen the rental prices in Steamboat? Renters pay a pretty penny, and for the landlord, its not too shabby of a deal). Even better, eventually many of the homes purchased as vacation homes become primary homes when their owners realize its okay to make everyday life your vacation. Why not have the ability to play on your days off?