Despite low inventory and higher prices, homebuyers are still looking into recreational properties, meaning vacation or secondary homes.
To help this group of homebuyers discover markets suitable for their desires, RE/MAX INTEGRA released its 2017 Summer Recreational Properties Report, which reveals affordable data profiles from three states and its recreational housing market trends.
The report noted three main reasons causing this competitive market, including, Baby Boomers starting to retire and seeking out homes where they can relax, but also have amenities for their children and grandchildren, Pre-retirement buyers purchasing their second home in preparation for retirement, and young families looking for vacation homes away from the city.
However, according to Fiona Petrie, EVP and Regional Director for RE/MAX INTEGRA, Midwest, in order for buyers to find a home that fits within their budget, buyers might have to make sacrifices about size, location, and amenities.
“We have seen low inventory in the primary home market, and now the recreational home market is no different—prices are escalating, and homes when priced right are selling rapidly—often with multiple offers,” Petrie said.
So which locations are the best markets for buyers to consider?
The Midwest region serves as a great market to look into. According to the report, the area of Lake Monroe Bloomington, Indiana averages home prices of $100,000 to $150,000. Not only is this location affordable, its close proximity to big cities like Indianapolis, Bloomington, and Columbus, serves as a benefit as well.
Northwoods of Wisconsin averages home prices at $150,000 to $250,000. In addition, this location is best for retirees with families and provides a lot of options for buyers. Buyers can select between frontage type, lake size, or zoning to find a home within budget.
In Minnesota, the Grand Rapids area is facing a housing surplus because there are more available homes than there are buyers, so there are great deals to be found. Buyers willing to sacrifice some square footage or lake size can find a home within a budget, with average home prices between $250,000 to $350,000.
To view the full 2017 Summer Recreational Properties Report, click here.