There is an increasingly popular trend for vacation home buyers to purchase property closer to home. The past decade saw quite a different situation as individuals typically would look to localities such as Florida or even Las Vegas for a vacation home. The notion of a shorter drive to a property that is possibly even within their own State is becoming far more attractive of an option than the more expensive and time-sensitive air travel is.
Jed Kolko, the chief economist at Trulia Inc., mimicked this insight, however it is true that vacation home sales are not just improving on the local level but are nonetheless still rising in popularity again in the aforementioned locations of Florida and Nevada. The whole purpose of a vacation home has focused on the fact that people want a place that is great for adults with plenty of activities for children that they may perhaps one day retire to. However, the status quo today seems to be heavily weighing the importance of proximity to one’s hometown.
Being able to constantly visit a vacation home perhaps more frequently than they would if it was a long plane ride away is crucial in the minds of today’s vacation home buyers. This coupled with the fact that owners will be able to sustain and keep an eye on their own property, especially in case of emergency or when making improvements. A recent survey from Homeaway.com showed that for 2012, today’s buyers in this market segment were inclined to purchase a vacation home that was a drive of four hours or less from their current home. 91% of these prospective buyers also plan on renting these properties out for the short-term which makes the close range of options a solid investment for their future.
According to the National Association of Realtors (NAR), in 2010 the average annual income for an individual purchasing a vacation home was $99,500 whereas in 2011 this number fell to $88,600. People become far more careful and are taking into consideration travel expenses, both time and money, more than ever before. In addition, the value of vacation homes has also dropped down to $121,300 for the end of 2011 which is 19% less than they were averaging in 2010.
Further evidence to the claim that proximity of one’s vacation home is the first priority of business is the incline in gas and airfare prices. From December of 2011 when they dropped to $3.23, a ten month low, prices have now been steadily fluctuating although overall going on an upward trend. Air plane tickets, on the other hand, have skyrocketed. Looking at the entire year’s averages that were gathered for 2010 and 2011, the jump between the two years was a lofty 14% increase.
This all summates to the foregone conclusion that distance is key. With people who live in and around the great city of Boston, there are many vacation home options. Many individuals who live in or near a city will have destinations to escape to surrounding it. However, Boston in particular has an array of desirable attractions for vacation homes, all within that key proximity distinction of roughly two hours or less. From the Massachusetts family-friendly sanctuary of Cape Cod, to going on an outdoor adventure in New Hampshire, or how about looking to vacation in Vermont with its sprawling hills and mountains, or even Maine for a quiet romantic getaway; there are countless options. We at Gibson Sotheby’s International Realty are highly connected and experienced throughout the New England region. With our local clients becoming increasingly inclined to look to invest in the Northeast, there is no firm more well rounded and prepared to find you not only the local home that you need, but the vacation home that you have only dreamt about.
More Information: Wall Street Journal