Domestic Hot Markets: A Variety to Choose From

According to the National Association of REALTORS® (NAR), last year there were a record 2.82 million vacation-home purchases, up 16 percent from the year before. It’s not just the wealthy who are buying vacation homes. The typical buyer earns $71,000, and buys a home worth slightly less than $200,000.

The NAR found that more than one in 10 home purchases last year were by vacation-home buyers who planned to use the property themselves, a 20 percent rise over the previous year. Vacation-home buyers are mixing business and pleasure, renting out their property part of the time.

The real-estate boom that has charged the vacation-home market, due in part to relatively low interest rates and the promise of big resale value, has seen investors and regular vacationers continue to purchase second, third and fourth homes.
In most cases the attractiveness of an area is defined by such things as a beautiful setting, proximity to growing urban centers, a major city, and/or big airport. Also important are recreational opportunities, i.e. ski lifts, beaches or mountains, cultural opportunities, decent weather.

Using some of these criteria, 2ndhome® pinpointed a few of the hotter spots across the country for vacation and second homes:

Brigantine, NJ: A barrier island north of Atlantic City, with an easy connection to the Atlantic City Expressway and an easy drive from Philadelphia, New York and Washington.

Sayville, NY: A long time summer haven for New Yorkers, it has attracted many second home buyers in response to growing frustration with traffic congestion in the Hamptons.

Bald Head Island, NC: Reachable only by ferry, and automobiles are prohibited. Plenty of white sand beaches, salty marshes and protected forest land. Development is allowed on only 2,000 acres of the 12,000-acre island.

Newport, RI: Buyers from the Boston New York areas are looking here as prices in the traditional markets of Nantucket, Martha’s Vineyard and Cape Cod have gotten too pricey.

Beaufort, S.C: Featured in movies like “The Big Chill” and “Forrest Gump,” and written about by former resident Pat Conroy in the pages of “The Prince of Tides” and “The Great Santini”, Beaufort boasts great fishing, and is referred to as “The Queen of the Carolina Sea Islands”.

Myrtle Beach, S.C: Continues to enjoy its status as having one of the nation’s best beaches and best retirement towns, with home prices rising. With 120 golf courses it draws 14 million visitors annually.

Pompano Beach, Fl: Lots of terrific beaches, and deep water dockage for boaters. Less expensive than Broward or Fort Lauderdale.

Daytona Beach, Fl: Best known for the international raceway, and the Daytona 500 auto race. Eight million visitors annually. Home prices are up.

Charlevoix, MI: Small town that features golf courses and plenty of water opportunities on the shores of Lake Michigan and Lake Charlevoix in northern Michigan;

Park City, UT: A former Olympic site which offers an outstanding playground for skiers and other winter sports enthusiasts.

Jackson Hole, WY: Plenty of wide open spaces, with ranch style living, cowboy charm, and great skiing, snowmobiling and hiking, and the beauty of two national parks, Yellowstone and Grand Teton. Wyoming has no state income tax, capital gains or inheritance tax, which results in people buying a second home then making it their primary residence for the tax benefits.

Texas Coast: This is a strong second home market area, somewhat as a result of no sub-prime mortgage problems, homes not over-appreciated, and having a strong and growing economic base.

Sedona, AZ: The red rock buttes of Sedona have long attracted visitors, and the area has become a hot second-home destination. The town has a broad cultural presence, with art galleries and live theater. Many come here believing that the town sits on some of the Earth’s strongest vortexes, or energy centers.

Sunriver, OR: This resort area is close to Bend and the Mt. Bachelor ski resort. It also features whitewater rafting, hiking and skiing.

Port Townsend, WA: This Victorian seaport remained almost untouched for most of its long history until being “discovered” by Seattle yuppies in the 1990s. Quaint, relatively mild weather and proximity to Olympic Peninsula have enhanced its appeal for retirees and urban folks.

South Lake Tahoe, CA: The ‘little sister’ to America’s largest alpine lake, Lake Tahoe, Nev., this community is coming into its own. Two new Marriotts and a planned convention center are putting it into the spotlight.

Oceanside, CA: This area has some of the lowest beachfront prices in San Diego County.

Ashland, OR: Great weather, scenery and rich cultural events have caused Ashland’s home values to explode in recent years.

This article was originally published in the Winter 2007 issue of 2ndhome® Specialist, a digital magazine for real estate professionals specializing in the second home and resort markets.