43 Urban Village Live + Work New Construction written by: Frank Vigliotti, Realtor®, Global Sales…
The vacation home market has seen impressive growth recently that even surpases the general housing market’s sales. This is good news considering the amount of owners that abandoned their vacation homes when the market declined.
The amount of tourists in the U.S. as well as the historically low home prices have been the two main factors that have affected the second-home market in Central Florida for the better. Orlando, Florida was listed as one of the top 10 locations for international buyers recently by a real estate news firm. Areas in South Florida, such as Miami and Fort Lauderdale have International buyers as well.
In the past 12 months, second-home sales in the United States has increased 15% since 2008, while during that same time period, general home sales have declined 13%. There are also many opportunities available for South Florida second home buyers. Real estate agents in the Orlando, Florida area note that there has been an increase in the amount of international buyers interested in purchasing vacation homes. Due to the extremely low real estate costs, Orlando has been attracting a large amount of Canadians and South Americans visitors and vacationers.
A property manager at a Central Florida Vacation Home Management firm notes that nearly 6 months ago that homebuyers could find about 50 or more home listings of less than $150,000 compared to the 10 listings they may find today. This goes to show that the inventory has almost been depleted and that there is more competition for homebuyers.
Although vacation-home sales aren’t logged on a local level, there are estimates stating that the cost for vacation homes in Central Florida has grown nearly 20% in the last 2 quarters. Although the home costs have increased this year, compared to the rates seen in 2007-2008, there are still reasonably priced homes out there.
A broker from the Osceola County region of Central Florida has reported that his firm recently acquired a $535,000 sale on a vacation home worth $1.5 million at the height of the market. Many of the vacation home sales have been in the Davenport area. The founder of a Vacation Homes Firm in the Davenport area noted that more investors are arriving in the area and especially have their eyes on the foreclosures.
This is awesome news for an area whose vacation home market was in shambles due to the unethical property management firms that ignored upkeep on properties and kept all of the profits. Many firms who ran similar operations had to call it quits during the decline in the vacation housing market.
A vacation rental online business, HomeAway Inc. states that nearly 39% of vacation home purchases in the United States were foreclosed properties. The prices of second-homes has seen a decline over the last few years due to the large amount of foreclosures from vacation home owners who’ve given up renting their properties. The amount of vacation homeowners who have faced foreclosures has risen above the rate for normal homeowners.
According to a survey conducted by the National Association of Realtors’. second-home prices has fallen more than 33% over the last 5 years while prices for normal homes has declined 25%.
Many international vacation home owners have abandoned their properties here in the United States because it didn’t affect their primary homes where they are from. These ultimately means that international buyers were able to relieve themselves of their vacation homes in the United States without it taking a toll on their credit ratings overseas. This ultimately lead to a surplus of vacation homes in which mortgages weren’t being paid, increasing the amount of foreclosures and the amount of homes owned by lenders.
Some economists expect the second-home housing market to continue to improve. A recent survey shows that 8 out of 10 respondents agreed that now is an ideal time to purchase a vacation property. Results also showed that 1/3 of current second-home owners indicated that they may have plans to buy another vacation home within the next couple of years. The vacation home market is expected to continue to improve for a long time to come which makes now a great time for those interested to check out vacation homes in the Central and South Florida area. Henri Frank Group markets towards and advertises to attract these International buyers.