Not only have vacation homes been a benefit for owners in escaping the stresses of life, those recently selling are pocketing some impressive gains on the way out of the closing. As usual, I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market or a National Economy. The same is true regarding the home price increase of vacation properties. That is more the interaction of supply and demand – of which factors such as droughts, wildfires, hurricanes, floods, earthquakes and tornados impact.
To identify the top home appreciated vacation home markets, Realtor.com examined the 500 largest metros with second home making up at least 12 percent of all properties. Then examined all transactions selling in the past 12 months comparing the most recent sales to the last sales price going back to 2008. Annualized profit was the difference between these two sales of the same property without adjusting for transaction costs or any potential improvements made on the homes.
The following table details the top-10 markets using Realtor.com’s methodology and CoreLogic data, along with the annualized return (based on the difference on the prices) and also the current median list price homes. They limited the findings to a maximum two metros per state in order to assure some geographic diversity.
To read the entire article from Realtor.com click https://www.realtor.com/news/trends/profitable-second-home-markets-america/?identityID=577d5c8652b7729cf2011c9d&MID=2018_1012_WeeklyNL_EMD&RID=4056478642&cid=eml-2018-1012-WeeklyNL-blog_1_profitable2ndhomes-blogs_trends
Always remember that current market performance may not mirror past returns. Be aware that any major future weather event or things such as earthquakes may change returns dramatically in just minutes.
As Realtor.com said, however, “Chill out, and then cash in.”