Vacation Waterfront Homes Continue on Slow but Steady Pace
Lake LBJ Waterfront Homes and Condos are tracking an almost identical sales pace in 2010 versus 2009. 68 properties have sold in the first 6 months of the year. The first six months of 2009 saw 78 sales.
Most people believe there are seasonal trends and the first half of the year sees more sales. Actually, the last six months in 2009 saw 99 waterfront sales. Let's hope that happens again in 2010.
Vacation and secondary home sales are more depressed in a down economy as they usually represent a luxury rather than a need. The inventory of homes continues to grow as properties are being listed at a much faster rate than sales. There is at least a 3 year inventory based on the existing sales pace.
With low interest rates and excess inventory, this is still an ideal time for buyers. Sellers that are truly motivated to move their home will price them correctly. Many waterfront homes are listed at artificially high prices as owners are being very unrealistic or do not really need to sell.
My speciality is cutting through the over priced homes and focusing on the decent buys available. Waterfront will almost always hold its value better than traditional property. Unfortunately for buyers, while the market is very much in their favor, waterfront still commands relatively steep investments. These investments have proven over and over again to be financially beneficial in a short number of years.