Good article for those in a Second Home or Vacation market

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Mortgage and Lending with PrimePay Business Services

A friend sent me an article published on Realty Times about Second Guessing Second Homes.  I am not a Realtor but the basic information sounds true for the Outer Banks market.  Sales are down, prices are down and now might be a good time for those with some discretionary funds.  

Fellow rainers that live in vacation markets - does this article accurately define your market? 

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Rainmaker
241,412
Dick & Sandy Beals
Wilmington Real Estate 4U Wilmington, NC - Wilmington, NC

 Hi Ronnie,

Our MLS reported only 2 sales on Wrightsville Beach in March....not good!  The prices seem to be coming down, however everyone is still very cautious.  Family homes off the beach areas seem to be picking up now.

Dick Beals 

 

 

May 01, 2007 07:07 AM #1
Rainer
34,864
Terry McDonald
TerryMcDonaldRealEstate.com, LLC - Charlotte, NC
Charlotte Real Estate-
I've also heard many NC Coastal areas were recently re-appraised for tax purposes, raising lots of taxes, any truth to that? Very interested in comments from coastal Realtors...
May 01, 2007 07:21 AM #2
Rainer
45,092
Ronnie Roach
PrimePay Business Services - Kill Devil Hills, NC

Dick and Sandy - sorry to hear about such low sales.  Trulia offers a tool that you can compare pricing between two towns.  I was looking at the local towns on the Outer Banks and the pricing trend was down in most areas.  The problem is that Trulia only has a portion of our actual data so accuracy is a bit off.

Terry - Most counties assess values at least once every seven years - not a Realtor but I think that is the rule in NC.  When you have an area like the Outer Banks that saw up to 30% appreciation in the hot years, you are bound to have to pay the bill to the tax collector.  

The other area that will be affecting our market is insurance costs.  Our homeowners insurance will go up by 25% for all coastal counties this year.  Ad to the recently updated flood maps and you have the total cost of ownership up considerably.  The market value of the Real Estate has dropped some but other factors have taken a bite out of potential savings.  

May 01, 2007 08:01 AM #3
Rainer
56,130
Laura Karambelas
Baird & Warner Downers Grove - Downers Grove, IL
Realtor - Downers Grove

Ronnie: I am Realtor in Illinois and recently bought a second home on a lake in Wisconsin. Our Realtor from Wisconsin had said that last year was a slow year in that area for waterfront. We've wanted to purchase a second home for years, with the slowing market and low interest rates, we thought this would be the best time to do it.  We got a great deal and plan to hold onto the property for years. We believe we made a great investment for our future.

 

May 01, 2007 09:28 AM #4
Rainmaker
241,412
Dick & Sandy Beals
Wilmington Real Estate 4U Wilmington, NC - Wilmington, NC

 Ronnie and Terry,

 The appraisals have come in and the new assessments have been delivered to homeowners.  Some are happy, most are not.  Beach areas in some instances have increased by 300% (not a typo), and some of these people who bought their modest beach cottage 7 years ago for $150k are now looking at a whopper of a tax bill.  Like I said, some are happy, some are not.  See related article here...

Wilmington on the Rise

Dick Beals  

May 01, 2007 10:06 AM #5
Rainer
122,017
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent
It's hard to see an appraisal from when things are hot and then when things have slowed.
May 01, 2007 12:24 PM #6
Ambassador
738,987
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Ronnie... I truly believe if you can afford it, buy that second home.  At least this is my opinion and I would use a safe COFI arm that Wachovia came out with lately.

On another note, CONGRATS on your 1st featured post. 

feature

 

 

 

 

 

 

                                                                        jeff belonger

May 01, 2007 05:28 PM #7
Rainer
13,462
Jay Sichel
Re/Max Tri County - Bordentown, NJ
Burlington County NJ Real Estate
At a class i attended earlier this year, it was predicted that the luxury and second home market has been adversely affected and should recover in a year or two
May 01, 2007 06:25 PM #8
Rainer
49,733
Uzi Husain
Keller Williams Integrity First - Scottsdale, AZ

thanks for sharing the article...here in metro Phoenix and Scottsdale, a.k.a Valley of the Sun - we have tons of second home buyers and while I'm not privy to the latest stats I can tell you that the market is still seeing second home buyers.  Now many tend to be upscale buyers looking at golf communities, luxury condos as well as palatial ultra luxe homes in the Paradise Valley and North Scottsdale neighborhoods.  I was also discussing this with a fellow Rainer and Realtor in Flagstaff and she indicated that their market is still thriving because of many Phoenicians who buy second homes up in northern arizona.

Cheers,
Uzi Husain
Arizona Realtor, serving Goodyear & The Phoenix metropolitan area 

May 01, 2007 06:39 PM #9
Rainmaker
233,576
Geordie Romer
Windermere Real Estate / NCW - Leavenworth, WA
Serving Leavenworth, Lake Wenatchee, and Plain

I work in the vacation and second home market of Leavenworth and Lake Wenatchee Wa. We haven't seen a slowdown here at all. Appreciation is at about 15-20% and our inventory remains low.

We are lucky to be within a few hours of Seattle. The economy is good in our state and even if real estate appreciation is not at the peak of a year ago, it is still quite healthy. (Closer to home, the Wenatchee market is booming with 20-30% appreciation annually.)

I really hate these articles about national trends. Real estate is local. 

May 01, 2007 07:29 PM #10
Rainmaker
112,119
Eliese Pivarnik
Colorado Group Realty, LLC - Steamboat Springs, CO
GRI, RSPS, ABR Broker/Owner Colorado Group Realty
I work in Steamboat Springs, CO and our market is booming.  Prices are up about 30% since December.  Construction is happening on every corner.  Our ski mountain was recently purchased by Intrawest and since then, the secret about Steamboat is out.
May 01, 2007 08:49 PM #11
Rainer
45,092
Ronnie Roach
PrimePay Business Services - Kill Devil Hills, NC

Jeff,

Thanks for the nice trophy.  My kids will be jealous.

I am glad to hear others are having a better times in resort markets.  Like Geordie said - Real Estate is local. 

May 01, 2007 10:00 PM #12
Rainer
40,137
Endea Thibodeaux
Auction2Sell, LLC - 240-381-6653 - Lanham, MD
CDPE, CLHMS, RECS, Real Estate Auctions - DC, MD, & PA
I think the second home market maybe the answer to some slow markets in the area.
May 04, 2007 06:04 PM #13
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Rainer
45,092

Ronnie Roach

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