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The market took -- -- struggling homeowners skipped their vacations to cut costs but now the market is recovering some homeowners are wondering if they should buy that vacation home.
Joining me now Christine -- Penske vacation rental industry expert and author of the book how to -- vacation properties by -- -- is good to see you again.
Local talk about first of ball is now look at time but I mean a lot of people are asking me they know that.
The second home market is really volatile I can be all over the place.
Is it too early -- too -- Well I think it's actually pretty good time to -- I think this is probably the time that will look back on.
In a few years -- say oh who read -- -- -- buy back in 2012 and 2013.
Now that prices are going up.
Last year the price is decreased 19%.
Over how -- previous year.
Yes significantly so on plane went down about wait wait wait wait nineteen per -- in a year her.
That's not well yeah -- -- is now primary -- market obviously it's just not that volatile not that the prices don't move around that that's what was going on.
Well I mean I just think it at we you know we we -- hit the bottom.
In my opinion that's -- -- bulk of the foreclosures finally you know hit the market a lot of foreclosures were held up.
For a long time because you know it took a long time for the process to go through but now -- a lot of vacation markets were seeing the inventory.
We're seeing the prices start to increase a little bit you know now they're not going up significantly -- but they're definitely starting -- -- -- dicier that I expected so tell me that tell me about the markets identify some of them.
Where we feel like we've got a floor.
And that the only direction is up.
Well he you know there seems to be like pockets of different states weird.
The floor is there on you know I couldn't make a -- statement -- -- Florida has seen its floor.
But I do believe that the Gulf Coast has seen its -- And as you move a little bit further south.
You know -- the market still little volatile in South Florida but you know in the north.
And -- Tennessee is still -- little unstable.
But you know there's some great foreclosures the prices are down it's a great time to buy and -- -- great -- market.
Going out west.
You know a lot of the markets out there are you know depressed because.
Kids they kind of follow the housing market with a little bit of a lag of course what once -- Primary housing market increases then this secondary home market will increase and landed there after you're expert at this because you own a lot of second homes you've written about the market -- -- extensive Blake.
What kinds of factors because you've done this repeatedly by by second -- What kinds of factors should individuals who -- trying to do this may be for the first time what should they be thinking about.
Well the first thing you have to think about is where you're gonna buy and I always recommend buying really close to home with -- you know whatever.
Comfortable driving distance for -- -- Hit it makes it much more manageable this thing -- I think you have to worry about is how you're gonna pay for it.
In this environment -- you know mortgage rates are really -- it's very difficult.
To get a more -- these days for a second home.
On for instance I wouldn't go by two properties last year and though I have really good credit pretty good you know network and really difficult to obtain mortgages I ended up paying tax.
For -- of the properties while the end set yak 86 -- -- I'm sorry 42%.
Of the properties that were sold last year were paid for with tax in the second home market.
So that tells you that the vast majority of buyers are coming in with cast.
The people who are more -- 70%.
Of them put more than 20% down so even if -- plan on getting a mortgage you're still gonna have to have a significant cash position.
To be able to buy yeah -- it's -- serious folks but the beauty of it of course is that you diversify your investment portfolio.
Not just stocks and bonds anymore -- now -- in real estate.
Home prices have dropped in dramatically so in the second marketed you just said.
Mortgage rates it doesn't get any better than this -- -- thanks for coming on tonight really appreciate your time thanks for educating us on this topic.
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