Second homes have seen a surge in popularity in the last few years. With that has come a surge in home prices. The National Association of Realtors recently reported that 35% of all new and existing single family homes and condo sales were second home sales.
For those who are no longer willing to tolerate the volatile stock market the second home is seen as a safe investment alternative. Continued low interest rates and the aging baby boomer's needs for vacation and retirement homes also contribute to the increasing demand for prime properties.
Retirehomesmart.com tracks home prices in 50 of the most desirable vacation and retirement towns/cities in the U.S. Destinations as diverse as Reno in the Nevada desert, to Winter Haven in temperate Florida to stately Newport, Rhode Island are seeing home price increases in the last year alone of up to 66%.
Tuesday, December 13, 2005
Tuesday, December 06, 2005
Home Price Update for the RetireHomeSmart 50
November home prices for all 50 of our surveyed retirement and vacation cities are now available at http://www.retirehomesmart.com
It seems that June represents more than a short term peak in home prices since November is the fifth straight month of lower prices, albeit only a 5% drop to $315,000 for the average home. Prices have increased a very healthy 14% from January, 2005.
Some markets are still extremely hot -- Reno, Nevada is up 66% from January to November and =Ocean City, New Jersey is up 57% in the same period. Prices in both cities show no signs of slowing down.
Other markets had a sharp run-up in the Spring and early Summer only to fall back. Cambridge, Mass was up 30% in early Spring only to end up where prices began the year. Gulf Shores, Alabama was up 39% through June but fell back to slightly below where prices were in January, presumably affected by the monster hurricane season.
It seems that June represents more than a short term peak in home prices since November is the fifth straight month of lower prices, albeit only a 5% drop to $315,000 for the average home. Prices have increased a very healthy 14% from January, 2005.
Some markets are still extremely hot -- Reno, Nevada is up 66% from January to November and =Ocean City, New Jersey is up 57% in the same period. Prices in both cities show no signs of slowing down.
Other markets had a sharp run-up in the Spring and early Summer only to fall back. Cambridge, Mass was up 30% in early Spring only to end up where prices began the year. Gulf Shores, Alabama was up 39% through June but fell back to slightly below where prices were in January, presumably affected by the monster hurricane season.
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