All you read in the news today is that real estate prices have fallen dramatically in many areas. However, are lower prices a chance for purchasers to buy that second/vacation/retirement home they always dreamed of owning? We want to look at the second home buyer and see whether the current market presents a tremendous opportunity for this segment of the population.
Does buying make sense right now?
Senior Housing News this month did an article comparing the advantages of owning vs. renting for boomers and seniors. When discussing a possible purchase, they said:
Even though the returns from investing in real estate may be in question for the next few years, the benefits of purchasing a home now remain important as pricing may be at or near a bottom, there is a substantial amount of available homes for sale, interest rates on financing are the lowest they have been in a generation and the interest paid on a home mortgage is deductible.
Unity Marketing, in a recent survey of high income families, found that one out of nine respondents (11%) had plans to buy a second/vacation home in the next twelve months. The wealthiest in the country have decided that now is the time to jump make into the real estate market.
Where are the best deals?
This past week, Reuters ran an article in their Personal Finance section which said now might be the time to buy that second home in the Sunbelt:
Look for a retirement or vacation home now. If you’ve been thinking you’d like a second home now or a future home in the traditional retirement Sunbelt, go shopping. Those markets are depressed by overbuilding, a lack of buyer interest and a boatload of foreclosures. You’ll be able to get a good deal.
In an article this week by Housing Watch, the South Florida market was discussed:
The forecast is that significant improvement will occur in a year to a year and a half. For South Florida, though, the forecast is what works in the area’s favor. It’s still a place where folks want to move and migrate to, thanks to the weather — perhaps a winter retreat for six to eight months or a second home. Once folks are more confident in their economic situation, they likely will begin migrating to the Sunshine State again.
Bottom Line
Now might be time to buy that second home. Prices in many regions of the country have dropped substantially. You should check with a local real estate professional in your current area that can get you great information on the areas that might interest you and your family.