Real-Estate Blog: Vacation Homes
Defy a Slowing Housing Market

Here's a look at what's new in real-estate markets across the U.S. from around the Web. (Some links may require registration or subscriptions.)

Vacation homes are selling

Although the outlook for investment properties is cloudy, the vacation-home market is expected to remain strong in 2006, as baby boomers, flush with money to invest, continue to buy vacation properties as a lifestyle choice, says David Lereah, National Association of Realtors chief economist. In 2005, sales of vacation homes increased 16.9% from 2004 for a record 1.02 million sold, according to the trade organization. Overall, he predicts a soft landing for the housing market, with sales of existing homes dropping 5.7% to 6.67 million.

On the way up in Manhattan

Affluent home buyers are showing an interest in pricey apartments in Manhattan after several quarters of a real-estate slump, says The New York Times. High-end apartments are more in demand here, where the average sale price reached $1.3 million in the first quarter of this year, up 7% from the first quarter of 2005, the paper says. "It shows that the New York market, after having a lackluster fourth quarter, is back in full swing with strong numbers across the board," the Times quotes Pamela Liebman, president and chief executive of the Corcoran Group, as saying.

Housing squeeze in Seattle area

Across the U.S. are reports of rising inventories of homes for sale, indications of a slowing market. Not so in King County, Wash., home to Seattle. Here, housing demand remains brisk, with 144 fewer homes on the market last month than March of the previous year and 2,056 fewer houses for sale than in March 2004, says The Seattle Times. Boosting the demand are a shortage of buildable land for new homes and a growing local economy, the paper says. The median single-family-home price is likely to remain above $400,000, The Seattle Times quotes a local real-estate professional as saying.

What's old is new again

Retro is in. In cities nationwide, a house's architectural style has become a significant factor in the property's value -- particularly if it is a midcentury modern (or "MCM") home. This style is characterized by strong horizontal lines, large open spaces, plenty of windows and skylights, and flat or low-pitched roofs, according to MileHiModern.com, a site that posts real-estate listings of homes with the style. Real-estate professionals in metropolitan areas such as Denver, Los Angeles, Chicago and Phoenix say properties with modern design are highly sought after and sell for more, says The Denver Post. In one south Denver neighborhood, residences in one Frank Lloyd Wright-inspired subdivision have increased 27% in price in a year's period, whereas more traditional houses on adjacent blocks have appreciated 10% in the same period, the Post says.

Homes on the water

Waterfront properties are a top choice for vacation-home buyers, says an article from The New York Times. Homes with a view sell for a 25% premium, while houses on the water garner a 50% premium, the paper quotes David Hehman, EscapeHomes.com chief executive, as saying. The national average for an oceanfront home? About $1 million, up 30% from last year, Mr. Hehman says.

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