Summer is the most popular time to buy a vacation home. As the season gears up, Coldwell Banker has performed a survey of popular resort markets throughout the United States and Canada.

Due to the same economic factors that make home ownership favorable, the demand for vacation homes is on the rise. Favored by low inflation, low interest rates, high consumer confidence, rising incomes, and recent changes in tax laws, vacation and second home purchases, particularly by well-to-do baby boomers and move-up buyers, are considered by many to be attractive investments.

In anticipation of a big vacation/second home buying season, Coldwell Banker Real Estate Corporation (COLDWELL BANKER*) has released the results of a survey that analyzes average price ranges of homes in selected resort markets throughout the United States and Canada. The 1999 Pricing Guide to Vacation Homes is also available through www.coldwellbanker.com.

According to the study, the greatest influence in the purchase of a second home is recreational opportunity. Accessibility to leisure activities such as skiing, surfing, or lake/stream fishing influence second home buying purchases more than any other consideration. Typically, a consumer will choose their vacation destination, then find out how much vacation home they can afford.

The Coldwell Banker study is organized by town location and four market types: lake/stream, ocean/shoreline, mountain and desert. The analysis indicates that the most affordable vacation and second home market is Escanaba, Michigan where the average medium-priced house costs $62,000. This market is ideal for homebuyers seeking property in a lake/stream location. The most expensive markets for a medium price range home are Montecito, California and Aspen, Colorado where the average home price is $1,300,000. A complete tabulation of the results and the full content of the 1999 Pricing Guide is available at www.coldwellbanker.com. The information can be located by clicking on the Property Search function, then by clicking Vacation Properties/price ranges.

Within the top 10 most affordable vacation property destinations, the middle of the country dominates the list. Cherokee Village, Arkansas follows Escanaba, with resort homes averaging $72,000. The West Coast houses a majority of the top 10 most expensive resort properties with exotic locales such as Malibu, Rancho Santa Fe and Newport Beach California. There, the most sought after property is located on or near the ocean and shoreline. For the survey, brokers in resort markets were surveyed on average sales prices within various desert, lake & stream, ocean & shoreline and mountain areas throughout the United States and Canada.

The state of California showed the most variety within the resort property market with properties falling into each of the four market type categories. Michigan and Florida were the states that accounted for the most resort market types, overall.

The Pricing Guide was compiled through the surveying of hundreds of Coldwell Banker brokers in resort market areas. The information, compiled from the average prices of Coldwell Banker affiliates’ listings shows representative prices of low range, medium range and high range properties purchased as second or vacation homes in select markets.

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Published: June 1, 1999

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