Scott Messier,  in Solana Beach, CA

Do you see a Big push towards second & retirement homes or fractional ownership from your clients?

Asked by Scott Messier, Solana Beach, CA Thu Oct 4, 2007

I was curious to know if the second home market is hot in and out of your specific market areas. Retired Baby Boomers are making big plays for second homes, retirement homes and upscale fractional ownership. Just curious to see if anyone is noticing. Thanks for the imput!

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I think you have a generational shift as the boomers hit retirement age and begin to leave their job areas and move to more desireable areas suited for a different lifestyle and perhaps less expensive cost of living. However, the secondary housing market will probably take it in the shorts due to the drying up of the market and the ability to sell the relinquished property and/or refinance and purchase another property for vacation and future retirement. As equities contract this will ripple out into the furtherest areas of the nation which might be uneffected by the current market stall. The immediate aftermath of the "credit crunch" we experienced last month has resulted in a 45% drop in September sales over last year for the same time here in Sonoma County, California!! I don't think this will be sustainable as more and more financing products will be hitting the market to make up the slack and the feds will step in and raise the conforming rates in the greatest state of California. Short term it is going to be brutual. Our local Association is considering a full page ad listing the many varied loan programs and their loan limits plus the wealth of properties and great bargains inherent in such!!
2 votes Thank Flag Link Thu Oct 4, 2007
As a Reatlor who is licensed in FL and NJ, I see a strong market for 2nd homes that are in the higher end range. The lower end range is more sensitive to the economy and negaive hosuing reports. The very high end is not as affected by negative hosuing reports. Decisions are based upon their wants, needs and negotiations. They often acutally look at now as a good time to buy, because of national attention to a slow downs in many areas of the country.
1 vote Thank Flag Link Thu Oct 4, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
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In Spring Lake, about 1/2 of the homeowners are second homeowners. We have sold 2X the amount of homes this year vs. last. It's not only retirees that are buying here. It's an extremely desirable town and a lot of young execs from the city buy here. Prices from 700,000-11,000,000.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Thu Oct 4, 2007
The second home market is usually behind the primary, we still have the boomers moving to the greater Palm Springs area but at a slower pace. They are waiting to see the bottom because no one has to have a second home.
Web Reference: Http://www.MIchaelRicks.com
0 votes Thank Flag Link Mon Oct 8, 2007
Scott, I am still seeing a number og baby boomers buying second homes and retirement homes here in the San Diego area. Many know they are getting a good buy here right now. Some are looking to buy and rent them out until they need to use them full time.
0 votes Thank Flag Link Mon Oct 8, 2007
We are seeing a lot of investment property buyers vs 2nd homes. My guess is this will change as we experience the next several months.
0 votes Thank Flag Link Thu Oct 4, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
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2nd homes are so 2006. This is the year of investment property and international vacation homes....
0 votes Thank Flag Link Thu Oct 4, 2007
Scott - We are definitely seeing an increase in Santa Claus Indiana. Many buyers are securing homes in and around Christmas Lake Village which is a gated community. They are doing this in advance of their retirement because they know that the market here is steady and if they hesitate they will probably miss out on their dream home. My most recent sale was for a 1/2 million and it was a vacation home, not a primary residence.
0 votes Thank Flag Link Thu Oct 4, 2007
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