Has the vacation home market recovered?

While the majority of the housing market has recovered, what about second homes?

One study found that in areas with a lot of vacation homes, prices are still below average.

Bob Hay, former PAR president and a Realtor® with Keller Williams, said that in the Poconos, business is booming. “Actually, we have seen a resurgence, probably starting in 2012-2013,” he said. “So far this year, they are running between 10-15 percent higher than what they were in 2007. That’s good, our overall market sales year-to-date has been down about 13 percent, but that is due to lack of inventory.”

“We have buyers, but we don’t have the inventory,” Hay added. He said most of the buyers in the Pocono areas he sees are from Philadelphia and New York, looking for second homes to use for themselves, as opposed to purchasing to rent them out.

“The vacation home community has been good. I think that will continue because of baby boomers having primary homes paid off and having discretionary money. They will look at is for vacation home or second home,” said Hay.

Robert “Wags” Wagner, a Realtor® with Berkshire Hathaway HomeServices, said in southwestern Pennsylvania, he has not seen a full recovery.

“The sales volume went up, listings did not,” he said. “We went from a sellers’ market in 2007 to a buyers’ market in 2009. Inventory doubled in both Seven Springs and Hidden Valley.”

“We will see about 115 to 120 transfers this year. That has been the norm for the market over the past few years,” he added.

Wagner said most buyers in the market are local.

“We are regional. That’s not the case for other markets. Many are fully recovered. I have had a chance to talk to brokers across the country, and almost all of them have seen a full recovery in the vacation market. Many are seeing multiple offers,” said Wagner.