Community News

When you hear the term “resort market”, many different visions may come to mind.  You could picture turquoise water and pristine, white, sandy beaches.  Or images of snow-capped mountains and miles of groomed ski trails might come to the forefront.  Yet one commonality of resort markets is the abundance of second-home owners in the vicinity.  These markets generally exhibit more peaks and valleys than the regular real estate markets due to the fact that primary residences do not encompass the whole community.  Whereas some towns rely on a steady base of industry and top-notch employment opportunities to stay vibrant, resort communities get by on their location and amenities, such as proximity to water recreation, golf courses, ski hills, and hiking trails. 

Recent figures show that vacation home sales in 2009 posted a 7.9 percent increase to 553,000 over the previous year.  More specifically, after peaking at 1,067,000 sales in 2006, the numbers plummeted by approximately 30% per year in 2007 and 2008.  Therefore, this recent increase is certainly a positive sign that some view as a comeback to this market segment. 

Presumably, the decrease in home prices all across the United States has made it more affordable for vacation home buyers as a whole.  In fact, in some markets, it is now a better deal to purchase a home outright than fractional ownership.  Furthermore, the lower prices have taken away from international purchases and kept the buyers within the U.S., even over Mexico for instance.  The median sales price posted an increase to $169,000 in 2009 over $150,000 the previous year.  National Association of Realtors economist, Lawrene Yun, is quoted as saying this “may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year.”

Many Realtors® across the country in recreational markets are giving feedback that the number of calls and internet responses they are fielding has increased thus far in 2010 over what they were experiencing even last fall.  Properties that are priced correctly and competitively are finding new life in buyers that have been waiting on just the right time to make a purchase.  With the world of finance being more difficult to navigate for second home buyers, the ones who are closing on deals are often more financially stable and showing up with cash.  They are not moving to an area for employment or relocation, but because they have scouted out the area to meet their needs in terms of recreation.  They are also generally moving at a slower pace while weighing options and decisions may take a few years to culminate.

Barrons recently analyzed the market for the most upscale second homes and developed their list of the 10 best places in America for second homes.  The lifestyles are as varied as the locations, from serene and laid back to vibrant and social. Maui topped the list, and two towns from our region made the cut, with Park City, Utah at number 4 and Aspen, Colorado at number 5.  Median prices for these markets are down anywhere from 6% to 45% from the peak year of 2007.

Let’s bring it local…there is a great deal of “good news” in the Big Sky market as we examine this year’s winter season in comparison to the previous one.  Beginning on October 1, 2008, and ending on April 30, 2009, there were 14 homes sold in Big Sky at a median price of $815,000.  This season, with the same date parameters, there have been 25 home sales, representing a 79% increase in sales, with a median price of $760,000, only a 6.7% decrease.  The condo market is even more impressive, with October 1, 2008, to April 30, 2009, showing 21 condos selling at a median price of $377,500.  This season boasts 50 condos sold for a staggering increase of 138% in the number of sales.  The median price decreased to $275,000, a 27.2% decrease.  Regional and national buyers are recognizing the values within the Big Sky market and are buying their legacy properties in record numbers.