The Vacation Home Market

As bad as the primary housing market has been over the past four years, the second home market has been been far worse. If people are worried about their job and their incomes, and they have been, the last thing that they will do is invest in a second or vacation home. All levels of the local second home market have suffered, even the upper-end waterfront homes. The traditional wisdom was that recessions may come and go but the upper-income households were not impacted and there would always be a market for waterfront homes. Well, we now know how false that assumption was!

Is the market returning? In western Maine there is plenty of inventory, buyers continue to be in the “driver’s seat” and prices are soft. All of which may encourage buyers to return. However, it can no longer be seen as a short-term investment! If it makes sense in terms of personal usage and/or rental purposes, now may be the time to buy. A July 23rd article in the Wall Street Journal suggests that many vacation markets are beginning to see a rebound. The article, Vacation Homes: Why It May Be Time to Buy, states that in many resort towns where prices were once sky-high, activity has picked-up as the prices have come down. We may soon see that in this region.

Much has also been said about the tougher underwriting standards in today’s mortgage market (some of it accurate), but if you are qualified, a second home can still be purchased with just 5% down. I confirmed that yesterday with one of our local lenders, Norway Savings.

If you are interested in seeing the wide variety of homes currently on the market, please visit KezarRealty.com. From there, you may also visit all Maine properties.

About kezarlife

I am a year-round resident of Lovell, owner of Kezar Realty (KezarRealty.com) and enjoy the variety of experiences that living in western Maine offers. Numerous lakes, ponds and mountains provide the opportunity to enjoy the outdoors every day. Married to Rondi we have two children. Ben is a Sergeant in the US Marines and with his wife Cassandra, son Jackson and daughter Reagan, live in Virginia. Ben's most recent deployment was to Afghanistan. Anna is a graduate of Fryeburg Academy, has studied in Beijing, China as well as Taiwan and now attends Hunter College in NYC where she is enrolled in their Chinese Flagship Program. I am active in many local organizations including the Charlotte Hobbs Memorial Library, Lovell Historical Society, Old Home Days, Lovell 5k Run, the Gasping Gobbler, the Tour de Lovell and the Brick Church for the Performing Arts. I also serve as President-elect of the Western Maine Board of Realtors. Please visit www.KezarRealty.com for up-to-date real estate listings and information on western Maine! Stan Tupaj
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