Market for Vacation Homes Is on the Rise
I just blogged an interesting article in the WSJ on vacation homes and how in some markets sales activity is on the rise. So I decided to compare how the Wild Dunes market did over the past two years – 2008 versus 2009 and then 2009 versus 2010. I used only residential sales, homes and villas, no vacant home-sites were included.
Here’s what I found:
There was a 12% decrease in the number of sales in 2009 versus 2008, and the average sales price was 18% lower in 2009 versus 2008.
Now, here is the interesting thing:
There was a 46% increase in the number of sales transactions in 2010 over 2009, and the average sales price was down just 3%.
Buyers watching Wild Dunes understand that prices are at 2004 levels or lower, that the inventory is moving and that sellers now more than ever are willing to negotiate. With prices and interest rates this low, more and more buyers are moving into the market. As the article in the WSJ says, “The proverbial train has left the station.”
Click here to read the article. Want to discuss?