Prices For Second Homes--Going Up or Down? (1 Viewer)

[chet]

I co-own a second home is Park City and the co-owner thinks prices for second homes have peaked around the country. He also thinks a higher interest rate environment will make them less affordable.

Anyone have thoughts on the second home market?

 

[El Floppo]

no.

but I swear your thread title had something to do with Priest Homes.

 

[ChiefD]

Don't know much about the second home market. My 3rd home market is doing well though.

 

[Random]

Is there something about this "second" home that makes it unmarketable as a "first" home?

 

[chet]

Is there something about this "second" home that makes it unmarketable as a "first" home?

No. There are some families in the community who live there full time but most of the owners live elsewhere for most of the year.

 

[belljr]

Around here they went way down but still way higher than before the market skyrocketed and the "bubble burst". Way too expensive imo here.

 

[avoiding injuries]

Vacation homes are the first to crash and the last to recover. I don't think they've peaked. I bought a place in 2008 at 70% of it's peak, and it ended up going down another 5-10%, bottoming out around 2011-2012. It's now back up to around 75-80% of it's peak.

I think it will continue to go up, but if interest rates rise, the price will drop or remain flat.

FWIW, my place is at the beach and their value goes up seasonally.

 

[mr roboto]

So not '2nd home' but rather 'homes in primarily vacation areas.' I do think rising interest rates are going to slow the growth of housing prices but I would imagine with this specific of a market (vacation homes in _________) that local supply, growth of the area, popularity trends of the area would be more impactful.

For example, a vacation home in Aspen is a rarer asset than a vacation home in South Florida. So I would think S Florida vacation homes would be more impacted by rising interest rates than Aspen.

Is Park City a small vacation area? Are there lots of homes for sale? Is it growing in popularity?

 

[El Floppo]

park city is a dump.

 

[chet]

park city is a dump.

Did I do something to upset you?

 

[ffldrew]

I would think with the Vail situation taken care of it should help a bit. You'll get tied to epic pass and that brings in Colorado and Cali skiers.

 

[culdeus]

Where is that article that talks about how 2nd home values could take a black swan event as baby boomers retire with low assets, and pass on that money to heirs at big tax rates? It was forbes or economist or something. It had some good insights about how in 15-20 years 2nd home areas will see an exodus like never before imaginable.

Still looking, it just shows how much wealth baby boomers have in homes vs. stocks and bonds. It was staggering. And many of these homes are now reverse mortgaged as well to pay for lifestyles.

Short term a buy, but long term there are some serious issues out there to resolve.

 

[chet]

I would think with the Vail situation taken care of it should help a bit. You'll get tied to epic pass and that brings in Colorado and Cali skiers.

I tend to agree. Also, I heard Vail is going to make PCMR their flagship resort because it's so close to the airport.

 

[El Floppo]

park city is a dump.

Did I do something to upset you?

of course not.

but no, park city is lovely.

eta: and I'm still seeing Priest Holmes in the thread title.

 

[Dentist]

Co-own?

Why are you slumming bro? need a loan?

 

[siffoin]

Where is that article that talks about how 2nd home values could take a black swan event as baby boomers retire with low assets, and pass on that money to heirs at big tax rates? It was forbes or economist or something. It had some good insights about how in 15-20 years 2nd home areas will see an exodus like never before imaginable.

Still looking, it just shows how much wealth baby boomers have in homes vs. stocks and bonds. It was staggering. And many of these homes are now reverse mortgaged as well to pay for lifestyles.

Short term a buy, but long term there are some serious issues out there to resolve.

Can you post a link to that article.

 

[chet]

Co-own?

Why are you slumming bro? need a loan?

Not really. It's a big house and probably more house than 1 family should own--especially for a ski house--but we like it there.

I will probably buy him out as he wants to sell and is offering me a good deal but I don't want to try to catch a falling knife so to speak.

 

[chet]

park city is a dump.

Did I do something to upset you?

of course not.

but no, park city is lovely.

eta: and I'm still seeing Priest Holmes in the thread title.

Am I the only one who's lost?

 

[culdeus]

Where is that article that talks about how 2nd home values could take a black swan event as baby boomers retire with low assets, and pass on that money to heirs at big tax rates? It was forbes or economist or something. It had some good insights about how in 15-20 years 2nd home areas will see an exodus like never before imaginable.

Still looking, it just shows how much wealth baby boomers have in homes vs. stocks and bonds. It was staggering. And many of these homes are now reverse mortgaged as well to pay for lifestyles.

Short term a buy, but long term there are some serious issues out there to resolve.

Can you post a link to that article.

I'll keep looking, i sort of remember seeing it here first in one of our investment type threads. Maybe the retirement thread.