Tempting Vacation Spots:
Four Runner-Up Locations
by Lauren Baier Kim
November 09, 2006
When RealEstateJournal.com searched the U.S. for vacation-home markets with relatively low prices plus indications that local home values won't significantly decrease in the next few years, no towns in the Northeast and the Midwest met our criteria.
The Northeast was excluded
because for the most part, its housing prices increased too much to
meet our
qualifications (RealEstateJournal's picks all showed
appreciation of less than 60% over a 10-year period). Potential towns in the
Midwest were knocked out of the running because projected five-year employment
growth across the region is lower than the benchmark, set at 8% or higher.
However, for homebuyers who want to purchase a second residence nearer their home than any of our 12 vacation-home locales, RealEstateJournal found four "honorable mentions" that missed the original cut:
Spirit Lake, Iowa
Situated in Iowa's Great Lakes region, the town of Spirit Lake borders East Lake Okoboji, which is linked to West Lake Okoboji and Spirit Lake, the largest natural lake in Iowa. Recreational offerings include boating, fishing, swimming, golf and biking.
On East Lake Okoboji, a mile from town, lakefront homes sell for $300,000 to over $1 million, says Keith Brockmeyer of Lakeland Realty of Iowa in Spirit Lake. The median home price in the lake area appreciated from $214,000 in 2005 to $261,000 year to date, he says.
Vacation-home sales drive the local real-estate market and he estimates two-thirds of properties are second homes, with most buyers coming from Sioux Falls, S.D.; Sioux City and Des Moines in Iowa; and Omaha, Neb. Mr. Brockmeyer says the local market is experiencing somewhat of a downturn, but it's not as dramatic as that in coastal areas like Florida or California, he says.
The town is part of the Sioux Falls metro area, where housing prices rose 56.9% between the second quarters of 1996 and 2006, below the national rate of 84.3%. Between the second quarters of 2006 and 2011, employment growth is projected at 7.8%, above the national rate of 6.4%.
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Ludington, Mich.
Ludington, Mich., offers several options for vacation-home buyers looking for waterfront property. The town is on Lake Michigan and the Pere Marquette River and is just four miles from Hamlin Lake. The area offers fishing, swimming, boating, cross-country skiing and snowmobiling for vacationers.
Homes on Lake Michigan are the area's most expensive -- starting at $700,000, says Cindy Papes of Century 21 Bayshore Real Estate in Ludington. Hamlin lakefront homes are less expensive, ranging from $300,000 to $700,000, and offer private moorage, she says. (On Lake Michigan, boats can only be moored in marinas.) On the river, homes start at $300,000, she says. Vacation-home prices have risen 5% within the past year for the Ludington area, she says.
Ludington is part of the Grand Rapids, Mich., metro area, where housing prices increased 57% between the second quarters of 1996 and 2006, according to New City Corp. Between the second quarters of 2006 and 2011, area employment is projected to rise 7.7%, according to Economy.com.
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Dundee/Yates County, N.Y.
Dundee, in New York's Yates County, is located in the Finger Lakes area, which is also the state's wine-producing region.
Two miles from the village is Seneca Lake, where lakefront homes tend to be cheaper than those on Keuka Lake, about four miles from the village. Seneca is bigger than Keuka, making the water colder but vacationers with cabin cruisers may prefer Seneca, which is linked to Lake Ontario through a canal system, says Mark Malcolm of Century 21 Sbarra and Wells in Penn Yan, N.Y.
Dundee is in the Ithaca, N.Y., metropolitan area, where prices rose 60.8% between the second quarters of 1996 and 2006, below the national rate of 84.3%, according to New City Corp. The number of area jobs is projected to increase 7.6% between the second quarters of 2006 and 2011, according to Economy.com. Lakefront homes start at $250,000 on Seneca and $300,000 on Keuka Lake, Mr. Malcolm says. Lakefront prices have risen steadily for the past five years, but have stabilized within the past year, he says.
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McHenry, Md.
Situated in Maryland's Appalachian Mountains, McHenry offers potential vacationers outdoor activities centered around Deep Creek Lake, and the nearby Potomac and Savage Rivers.
The area is two hours south of Pittsburgh and three hours west of Baltimore and Washington, D.C., which tends to drive its real-estate prices, says Bob Everett of Coldwell Banker Deep Creek Realty in McHenry. Smaller homes near the lake with access to a boat slip sell for under $400,000, he says, while houses of at least 3,000 square feet with lake and mountain views tend to sell for $600,000 to $700,000, he says. Lakefront homes, which are more expensive, start around $1 million, he says.
McHenry is in the Morgantown, W.V. metro area, where home prices increased 56.7% between the second quarters of 1996 and 2006, according to New City Corp. Within the next five years, employment is projected to increase just under 6.4%, according to Economy.com.
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