If you’ve been debating buying a second home, the timing may just be right for you now. If you’ve been talking to a real estate agent or short sale realtor, they’ve probably let you know that the vacation-home market is starting to heat up again.
It makes sense that the market is showing signs of life again, as lower prices are pushing buyers off the fence. Buyers are looking for properties in far away destinations, as well as those that are a more manageable distance from home. For example, many Angelenos are pursuing Palm Desert real estate and other areas in the region, such as Indio, Indian Wells and Rancho Mirage. Likewise, many international buyers are also targeting the highly desirable Palm Springs Valley as the location of their vacation or second home.
Due to low rates, bargain prices and dwindling home inventories, sales of vacation properties in the United States rose 7% in 2011, according to the National Association of Realtors (NAR). Both listing agents and short sale realtors say that many buyers are snapping up homes to take advantage of low mortgage rates, even though there may be some potential for prices to drop further.
Keep in mind that the bottom for prices on vacation homes will only be apparent in retrospect—but look for signs that they are on the horizon. If you are searching Palm Desert real estate properties for your vacation home, assess the specific market, as well as the Palm Springs market as a whole, to see if some areas in the market are showing price increases. While some markets in Arizona, for example, are showing declines, many markets in California are rising in price.