Second-Home Buyers Go Condo

Wall Street Journal (04/18/08) P. W10; Fletcher, June
Vacation home sales plunged 31 percent to 740,000 last year from 2006, according to the National Association of Realtors. However, while sales of detached vacation homes fell 38 percent, sales of vacation condominiums dropped only 2.8 percent. Condos also accounted for 29 percent of the vacation-home market, rising from 21 percent the prior year, gaining popularity among second-home buyers because they provide pools and other amenities, do not require owners to undertake maintenance tasks, are priced lower than single-family properties and are easier to sell than detached homes. Nevertheless, vacation condos experienced a 10-percent decrease in median price to $180,000 in 2007, mainly because investors are lowering prices to ensure a sale. Builders are erecting condos in new vacation spots, such as Lake Michigan, and also are offering "condo homes" for buyers who want detached properties without the maintenance hassles.