With California home values declining, many California homeowners will be forced to sell their vacation homes and the huge demand/supply imbalance will accelerate value depreciation. Already in Yuma, a favorite vacation home mecca for Colorado river enthusissts, there are "For Sale" signs on every residential street corner. Value drops of these second homes will far surpass the primary home market depreciation currently well underway.
Second-home purchases in California dropped sharply last year, the result of lower appreciation for primary residences as well as continued interest in out of state properties.
A total of 13,798 second homes were purchased in vacation markets in California in 2006. That was down 37.1 percent from 21,925 the year before, and the lowest number of sales in DataQuick's second-home statistics, which go back to 1998. The peak was in 2004 when 24,916 vacation homes sold. [tags]vacation homes,second homes,2nd. homes,California real estate,Arizona real estate,housing bubble, housing bust,San Diego real estate[/tags] San Diego real estate agents
Second homes have always been a real luxury and now were in a real estate bust I must agree their values are really going to dive. The dive is not going to be confined to second homes; I believe all luxury goods such as off-road vehicles, water-craft, and time share vacation destinations will soon be at bargain basement prices. I guess this could be looked at from the point of potential buyers, as the upside of a San Diego real estate bust. San Diego dental implants
Real estate should always be thought of as long term investments. People who buy properties whether in San Diego or anywhere else must realize that the potential for loss is ever present.
Jack
Skin Care Medications
Tough times in real estate may change the San Diego conventional wisdom that you can never lose in real estate.
Jason
San Diego Vacations
I think people’s expectations of multiple digit appreciation each year in real estate is now proven to be a total fallacy.
Adelle
San Diego Real Estate