Vacation- and Investment-Home Shares Hold Even in 2010

I edited this article allowing it to specifically address vacation homes. Click on the link above for the full article.
billy


The market share of vacation- and investment-home sales1 held steady in 2010, although the sales volume declined with the overall market, according to the National Association of Realtors®.

NAR’s 2011 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2010, shows vacation-home sales accounted for 10 percent of transactions last year while the portion of investment sales was 17 percent, both unchanged from 2009.

All-cash purchases have become prevalent in the second-home market in recent years: 59 percent of investment buyers paid cash in 2010, as did 36 percent of vacation-home buyers.

With an overall decline in home sales during 2010, the volume of 543,000 vacation-home sales was down 1.8 percent from 553,000 in 2009. Primary residence sales declined 5.6 percent to 3.81 million from 4.04 million in 2009.

The median vacation-home price was $150,000 in 2010, down 11.2 percent from $169,000 in 2009. By contrast, the median primary residence price declined a relatively modest 4.5 percent to $176,700 last year from $185,000 in 2009.

The typical vacation-home buyer in 2010 was 49 years old, had a median household income of $99,500 and purchased a property that was a median distance of 375 miles from his or her primary residence; 31 percent of vacation homes were within 100 miles and 41 percent were more than 500 miles.

“Even if purchases are delayed due to economic circumstances, the underlying long-term demand – the desire for purchasing second homes – remains because people in their 30s and 40s will reach the prime age for buying and will drive the second-home market in coming decades as conditions permit,” Yun added.

Currently, 40.7 million people in the U.S. are ages 50-59 – a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 43.8 million people are now in the primary buying demographic of 40-49 years old, while another 40.4 million are 30-39.

Lifestyle factors continue to be the primary motivation for vacation-home buyers, with the desire for rental income driving investment purchases. Vacation homes were more likely to be located in a rural area, while investment homes were more likely to be in a suburban location.

“Vacation-home buyers want the property for their own personal use, with 84 percent saying the primary reason for buying was to use for vacations or as a family retreat,” Yun said.

Thirty-four percent of vacation-home buyers said they plan to use the property as a primary residence in the future. Vacation-home buyers plan to keep their property for a median of 13 years.

Business After Hours at the Indian River Golf Club

Fun Golf Scramble Business After Hours

Call and reserve your spot now!

The Indian River Chamber of Commerce Ambassador’s, Indian River Physical Therapy, Coldwell Banker and Burt Lake Marina would like to invite you to a "Fun Golf Scramble" Business After Hours (BAH), Thursday, May 12th, at the Indian River Golf Club, beginning at 5:30. Tee off @ 6:00pm; playing until 7:30pm when the appetizers will be ready. 
Join us for games, prizes and fun on the course followed by wonderful hors d'oeuvres and networking, afterwards in the Clubhouse.

BAH is $10 per member and $15 per not yet member.
(There is no additional charge to golf)
There are limited spaces, so Please RSVP early with the Chamber at 238-9325.

Spring Skiing in Northern Michigan

Spring skiing is my favorite.  Perfectly groomed slopes. Warmer, sunny days. And I think it is fair to say the lines at the chair lift are short.

Survey: Vacation Home Market on the Rebound

The following article provides secondary verification to what I have been saying for some time.  The noirthern Michigan vacation home market is ceertainly making a return but buyers are cautious.  They are willing to take a little less if they can spend less thus decreasing the overall investment and therefore risk.  I property with 200' of waterfrontage used to be a hot commodity but the 100' lot is now acceptable in trade for a lower cost.  Everybody still wants a vacation home but how much of a vacation home has changed.  The important factor to remember is that vacation homes are about lifestyle and family.  As one client said to me, "You can't take your kids up north to your stock options.- billy

http://www.sunshinestatenews.com/story/survey-vacation-home-market-rebound
After several years of negative trends in the real estate industry, finally a sign of life: A market study just out by a Stuart real estate marketing firm shows budding consumer confidence in the second- or vacation-home market.

"It's no exaggeration to say that four years ago -- unless you count commercial buyers grabbing up ultra-cheap foreclosures -- the second-home market was dead as a doornail," said Rolly Marsh, a market analyst with Washington, D.C.-based National Association of Realtors.

The good news comes via the third annual Cotton Report, which reports a polling of more than 800 participants on housing preferences, motivating factors, pricing levels and timelines for purchase. It included participants from 39 states, Canada, Europe and Latin America.

While no direct correlation was made to the harsh winter temperatures, the research survey did point to a significant increase in the number of homebuyers looking to buy a vacation home -- in fact, a year-over-year increase of 800 percent.

This trend is further supported by an increase in the number of buyers describing their transition as "a geographic relocation." Over the three years the study has been conducted, there has been a continuous trend toward smaller homes. The most popular size? It's now between 1,700 and 2,299 square feet. Homes ranging from 1,000 to 1,699 square feet saw an increase of 5 percent in interest levels from 2010 to 2011.

The Cotton Report also shows signs that pricing levels have adjusted to meet consumer expectations.

In 2009, respondents indicated the need for a 50 percent price reduction in order to re-enter the market. In the 2011 survey, this level of price reduction has changed dramatically, down to 20 percent.

"The second-home market is improving, more orderly and more predictable," the NAR's Marsh told Sunshine State News on Friday. "The bad economy and real estate decline of 2006 to 2008 in particular weeded out the speculators. Now we have second-home buyers who buy homes to live in them. Most aren't purchasing for a quick turnover.

"Buyers are returning cautiously, buying smaller and smarter," said Marsh.

The Cotton Report, an annual consumer report, is compiled by Cotton & Co., a 28-year old firm specializing in the marketing and sales of residential real estate throughout the United States and the Caribbean.

Says Stephann Cotton, the firm’s president, “The adjustment of pricing to realistic levels has brought buyers and sellers closer together. These price adjustments combined with the brutal winter up North have resulted in strong sales in many of our resort residential properties.”
The future of the 30-year mortgage is still up in the air, Cotton acknowledges, but the survey indicates that even though 36 percent of the respondents plan to finance their purchase with a 30-year mortgage, an equal 36 percent plan to pay with cash. The rest are opting for a 15-year loan.
“One of the most dramatic changes in buyer psychology was seen in the responses from those who are uninterested in a real estate purchase,” says Laurie Andrews, Cotton & Co.’s COO. In 2010, 96 percent of these respondents cited economic conditions or political instability as the reason for not purchasing. In 2011, the number was cut in half, with 46 percent of the respondents saying they now have no desire to move.
“These results show buyers are beginning to separate the home buying process from the economic instability,” Andrews said.

Spring or Winter...Wait a Day

One day it looks like February then next it looks like April all in the month of March. Hopefully this is our March "Coming in like a Lion". These photos are of the "GreenDock" on the Indian River which connects Burt Lake and Mullett Lake.

Wine Tasting at Sage in the Odawa Casino

If you are looking for a fun afternoon activity while up north, this wine tasting a nice alternative.
Wine tastings take place every Saturday with the next one Saturday, March 5th, from 3:00pm to 4:30pm. The cost $10.00 per person. For more information - 231-439-6100
www.odawacasino.com

Fishing in Burt Lake

I helped Joe find his cottage on Burt Lake.  He knew I was great then  . . . now I am his hero!   lol

Haul your gear onto the lake.

 Set up your stuff

Catch a Bunch of Fish