In a recent analysis of the “upscale vacation-home market,” Wall Street Journal said that now is the ideal time to buy. “Five years after housing’s peak, markets that once were out of sight even for well-heeled buyers are now in range,” said the article.
Miami, however was listed among the depressed vacation home markets, suffering drastic reductions in the median price, which is currently marked at $130,000. This is a 57 percent reduction from the median price five years ago, which was $302,000 and 10 percent decrease from 2010, according to the article.
“In places like Miami, Fla. and even Martha’s Vineyard, Mass., prices have continued to drop as foreclosed properties flood the market,” said Wall Street Journal.
However, these price reductions are believed to be a driving force in attracting international buyers–a group which was recently said to make up 60 percent of sales in the last year.
One Miami based real estate firm, Pordis Residential told Wall Street Journal that “wealthy Venezuelans looking for a safe haven from President Huge Chavez,” have made up 35 percent of their sales this year alone.
According to data from the National Association of Realtors,the median second home price in 2010 was $150,000-an 11 percent decrease from the previous year, and 25 percent less than the more stable market of 2006. Considering the 22 percent drop in the overall housing market, the luxury end is holding up pretty well, said Wall Street Journal.
“Buyers are taking heed. On Palm Beach Island, Fla., sales were up 50 percent in the year ending June 30,” said the article. Those looking at properties have also increased, by approximately 30 percent this year.
Palm Beach is currently reported to have a median home price of $254,000; five years ago the median price was $758,000. Unlike Miami, Palm Beach is attracting buyers with their low-priced condos and more. Palm Beach also isn’t notorious for their foreclosure backlog.
The article emphasizes the impact of geography, saying that “in some places prices are holding up, while in others they are still tanking.”