In seaside Ocean City, MD, where 91 percent of the homes are vacation home properties, owners were buoyed by the prospect of reduced property taxes after assessed values dropped 36 to 45 percent over the last three years, according to county officials.

Scouting the slopes in Colorado's ski resort areas of Aspen, Beaver Creek, Steamboat and Vail will uncover some home prices in the toniest areas still holding steady, but overall sales are down by about 40 percent, according to a University of Colorado's real estate center.

In Maui, both home prices and sales are down about 25 percent each, according to the island's real estate association.

And don't forget California's resort areas. Home prices in the Golden State are down by 50 percent or more in many locations.

That's only the beginning. Lower prices and less competition are the tip of the iceberg-sized list of factors that make it a good time to consider a vacation home buy.

"In many vacation markets, you can pick up a beach condo or a mountain cabin at a decent price. In some markets, homes are back to 2000 prices," said vacation home guru Christine Karpinski, director of Owner Community for HomeAway.com (an online vacation home rental Web site).

She says a host of market conditions have converged to make buying a second home a smart move right about now.


Take the stock market. Please.
"Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold," she says. "Yes, home values are down right now but they have always rebounded. I wouldn't recommend buying a second home with the expectation of flipping it for a quick buck, but if you hang onto it for a while -- and better still, turn it into a vacation rental property -- you'll make a nice profit," Karpinski says.


Interest rates are cooperating.
On Dec. 24 Freddie Mac's Primary Mortgage Market Survey revealed 30-year fixed-rate mortgage hadn't been lower since Freddie Mac started the survey in 1971. "Rates have been reasonably low for awhile, following earlier rate cuts toward the beginning of the year. That's good news for anyone who's in the market for a mortgage," Karpinski added.


The pressure of bidding wars is off.
"Housing bubble or no housing bubble, you're not going to get bargain basement prices on, say, a cottage right on the ocean—but if you're willing to buy a few rows back, you'll likely find that prices have fallen substantially," notes Karpinski. "Because houses aren't flying off the shelf, there's less pressure on you to make a quick decision. You can afford to take your time, do your research, and refine your plan," she added.


Vacation rental demand is on.
Economic pressures on travel budgets are forcing those who once traveled abroad to stick closer to home. To further save travel dollars, domestic travelers want the most bang for their getaway bucks. Vacation homes provide all the comforts and options of home (eating in, game rooms, wirelessness, etc.), often at a per-person rate that's cheaper than a hotel.

Karpinski says, "Vacation homes tend to be less expensive than hotel rooms. This is especially true if you're traveling with extended family or a group of friends. Not incidentally, in many areas of the country, rental demand exceeds supply. The Sunshine State (Florida) is a prime example. Buy a vacation home in a market like Cape Coral, Daytona, Destin, Fort Lauderdale, Indian Rocks Beach, Kissimmee, Madeira Beach, Orlando, Panama City Beach, Sanibel Island, West Palm Beach, or Windsor Hills, and you can't lose."

The weak dollar makes American destinations attractive to European travelers and others holding stronger currencies. Also, business travel continues to generate vacation rental income -- especially when foreign business associates come calling.

"It's a far more comfortable option; plus many companies work out deals with homeowners whereby they can get volume discounts," said Karpinski


A vacation home can pay for itself.
When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals, Karpinski says.

The calculations don't consider the added cost of a property manger you may need if you are not a do-it-yourselfer. Despite the convergence of positive factors pointing to an opportunity to buy a second or vacations home, the fundamentals still apply. Strong credit, low debt, high savings and other assets are a plus

Get Ready for the Spring Market and Landscape that Yard!

A lot has been written about landscaping yards for curb appeal because buyers see the outside first when they drive up to a home. So it makes sense to make this area as attractive and inviting as possible. Doing that requires thinking about what would really make a property alluring.

You don't have to spend thousands of dollars landscaping a home when you're about ready to put your home on the market. Instead, investing a few hundred dollars could make a huge difference to a buyer. In fact, curb appeal can be the sole reason prospective buyers ever end up entering a home. That's why listing agents will often give their sellers tips to help them fix up their homes. Here are a few things you can do.

1. Color is key.
An attractive landscape usually has color. Many people add flowering plants along the walkway and porch area to create a focal point on the home. The colorful plants add a cheerful welcome and create a memorable landscape. Remember, buyers will generally visit numerous homes in a day, so anything you can do to help them remember yours, in a positive way, will increase the chance of a second visit or even an offer. Colors that grab the most attention are red, orange, and yellow. Cooler colors such as blues and purples help to relax people and can be perfect in meditation gardens.

2. Use colorful mulch.
Maybe you have an area that needs some sort of mulch. You don't have to use the traditional wood chips, which soon deteriorate, to fill in planter boxes or backyard playgrounds. Rubber mulch uses recycled ground rubber that comes in several different colors including green, brown, blue, and cypress. "Make sure any recycled mulch you buy is tread-free. You don't want to have any steel. You don't want to have a lot of tread. You need to look out for that. There are companies that just offer black tires recycle and that's usually going to be pretty dirty," says Paul Parker, owner of San Diego Backyard Adventures.

It can be bought in small quantities such as 40-pound bags or large super sacks. "It will not deteriorate; it's going to last," says Parker. A 40-pound bag will cost approximately $20. Parker adds, "This product is going to look good for literally five or 10 years and, if you're concerned with the short-term, you can put the [mulch] down and it's going to add color and be pleasing to the eye."

An added benefit is that if your home has a backyard playground and you put mulch underneath it instead of wood chips, you gain a higher level of protection and an additional selling point to feature. "It's definitely going to add value because oftentimes if you put a play system on a hard surface there's no safety—but if the [rubber mulch] is already there, it's going to add a lot of value," says Parker.

3. Artificial grass.
Green grass is a beautiful feature in a yard but keeping it green can be a challenge no matter where you live. Using synthetic grass in various areas of your yard can transform an ugly area of dirt into a lush-looking yard. Parker cautions homeowners to choose the grass products carefully, "There are some products out there that are being cheaply made. So [the grass] has a single blade rather than a much thicker weave. You want to make sure the grass you buy has at least a 10-year warranty," says Parker.

4. Illusion of space.
Hide boundaries such as fences and walls. Make them appear boundless by breaking up the line of the wall which can create a closed-off feeling. Paint and the placement of plants help give an illusion of more space. Using tall but thin plants in your yard (as opposed to wide ones) can make a small area look bigger. Curved lines can help soften the look of a home that is constructed with too many straight lines or right angles.

5. Clean up the driveway.
If you've been a do-it-yourselfer with your automobiles (oil changes, etc.) then maybe it shows on your driveway. Oil spills are highly unsightly and will, if not chase away prospective buyers, at least create a memory of your home that you don't want. Clean up the spills and move the parked cars to give buyers a chance to take in the entire residence. Many will snap photos and make notes to review for later. Don't let an oil mark leave a black mark in buyers' minds.

The Silver Lining to Foreclosures

Yes, I realize that it is hard to put the words "foreclosure"and "silver lining" together in the same sentence. However, while the foreclosure is a tragedy on a personal level for someone or a whole family and a national tragedy for all of us, it does create an opportunity for home ownership for someone who had been priced out of the housing market before.

The Washington Post just did an article in its real estate section on Saturday, February 21, 2009, which described one of the beneficiaries of the housing bust - young couples who couldn't afford to buy a home before. These buyers are helping all of us by taking those vacant houses off the market and turning them into homes again. They are helping to rebuild the economy by buying new furniture and renovation or construction supplies from Loews or Home Depot.

The National Assocation of Realtors said earlier this month that 45 percent of all sales in the fourth quarter of 2008 were distressed sales. Working with foreclosures is not profiting by someone else's misfortune as one ActiveRainer said recently. There are a lot of potential homeowners out there who can benefit from the supply of foreclosed homes, and finally get a chance at that best of American dreams, home ownership. If the financing is done responsibly this time, it can be a great turn around and one in which I am proud to be a part.

If you are interested in find a foreclosure, please give me a call at 240-401-5577 or email me at lise@lisehowe.com.