Just when we thought the vacation housing market couldn’t get any stronger, the National Association of Realtors (NAR) announced that vacation home sales in the United States reached an all-time high of over 1.1 million homes sold in 2014. This marks a 57% increase over the 2013 total, which was also a major improvement over the prior year. What is perhaps even more shocking is that it also represents a 6% increase over the prior peak of 1,067,000 vacation home sales in 2006. While the median home price declined somewhat in 2014, it has effectively hovered in the $150,000 range since 2008. This massive jump in overall sales activity was fueled by strong consumer confidence and is being reflected in low inventory levels across many areas.
Our Vice President of Advisory Adam McAbee, who regularly analyzes the resort market in the United States and internationally, shares five examples of the vacation/resort market’s resurgence:
- Martis Camp, by DMB Associates in Truckee, California, sold 80 developer-owned custom lots in 2014 at an average price of approximately $1.1 million.
- Discovery Land Company launched its Makena Golf and Beach Club on Maui and is actively working on a new development on the north shore of Kauai – both of which will command top-of-the-market premiums
- Camana Bay, a walkable, mixed-use master planned community in the Cayman Islands is preparing to introduce its next phase of residential product to the market.
- Stein Eriksen Residences, a ski-in/ski-out neighborhood in the Deer Valley area of Park City, Utah opened in late 2013 and has put under contract 29 condos at an average price of $3.9 million and eight single family homes at an average price of $7.1 million.
- Tres Santos, a beach-, farm- and hillside-oriented master planned community in the Todos Santos area of Baja California Sur, Mexico released several of its residential product lines, and is slated to become one of the most prominent master plans in the region.
All of these projects are good examples of how developers around North America are betting that the vacation housing market is back. And if our recent involvement in this sector is any indication of market strength, then 2015 will likely prove to be another outstanding year.
Contact us to discuss how we can help you with your vacation home development in the United States or abroad.