Contributed by Adam McAbee, VP of Meyers Research Advisory Group
Although cool weather and home sales still loom across the country, the vacation housing market is enjoying an early spring break.
The graph below illustrates where vacation home sales stood in 2013, along with our estimate of how they are likely to trend through the foreseeable future. While last year’s 30% jump is quite favorable, it is also a reflection of historically low home prices and improved consumer confidence. As this confidence continues to increase over the coming years, we expect vacation home sales to improve, however, they will likely stabilize around the 750,000 unit mark after peaking in 2015.
According to the recent release of vacation home sales statistics by the National Association of Realtors (NAR) in their 2014 Investment and Vacation Home Buyers Survey, we observed a clear picture of trends that we have also experienced first-hand in a number of such communities around the United States over the past year. For example, we’ve seen that several California properties are experiencing banner growth. Martis Camp, a golf and ski-oriented community in Truckee near Lake Tahoe, sold 66 developer custom lots in 2013 at an average price of approximately $900,000. In Dana Point, Strand at Headlands, an ocean-front community, sold 26 developer custom lots in 2013 at an average price of approximately $4.3 million.
We are encouraged by this renewed interest in secondary homes and look forward to monitoring California’s continued growth in the vacation homes market.
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