The Second Home Muse

Tahoe Development

With ski season upon us, an frequent thought is, 'if we just owned our own ski condo...' So here's a quick look at one ski area that apparently is 'under-developed.' That's Squaw Valley, in the Lake Tahoe area. Lake Tahoe itself is huge, and surrounded by lots of potential vacation spots, in both Nevada and California, from South Lake Tahoe to North Lake Tahoe and all points in-between. However, the best skiing, according to some, is at Squaw Valley, the site developed for the 1960 Olympics. It's been growing ever since. A recent Nevada newspaper article points out that it is still growing...most of the Placer County new developments are taking place in Squaw Valley. One reason they mention is that the other areas have a surfeit of (and therefore, vacant) vacation homes, making it less attractive to build more.

Whether you pick Squaw Valley for your own second home, or any where in Tahoe, remember our advice: stay there for a vacation in all seasons first, and be sure you like it. Happy trails!

East Coast Skiing

In keeping with the election spirit, I thought we could give a heads up to the new arrivals in DC. You might not think about Washington DC as a hub for skiing, but in fact, there are some great places to have a second home just for that purpose. A neat site called DC Ski lists 'lost' ski areas... that is, little known ski areas reasonably accessible to the nation's capital. They include spots in Maryland, Virginia, West Virginia, Pennsylvania, and even North Carolina. All the areas have some lovely mountainous sections perfect for skiing, and equipped with snow machines in case it doesn't get cool enough.

So if things get to hot in the capitol this year, or if you are looking for a great investment, check these areas out. There may be plenty of takers for rentals. Here are two of our favorite East Coast mountain towns:

Poconos in Pennsylvania
Asheville, North Carolina

Affluent Buy Waterfront Second Homes

Two big players in the Affluence league, Sotheby's International Realty and Architectural Digest, shared their knowledge of the second home market recently. Their joint study of subscribers to Architectural Digest reveals really interesting facts. First, 49% of people who have 3 or more homes, plan to get another in 2 years. Is this love, addiction, or brilliant investing?

Another neat fact, which the visitors to EscapeHomes constantly confirm: 75% want waterfront. Of course, the neat thing with the affluent is that they can afford it, too!

And finally, move over baby-boomers. The survey shows that 44% of the under-45 group are into second homes.

What's it all mean? I don't draw any conclusions from this one. Just musing on the fact that seems that second homes are still in, despite the market concerns. At least with those who can afford to still be in. Reminds me of my midnight poker games, where the last ones in were always the ones with big pockets.

Second Homes in British Columbia

British Columbia has long been on my wish list of places to visit, and possibly buy property. But I must admit I was a little wary, since my only exposure was from a friend who bought several properties north of Vancouver, all in very beautiful but fairly remote and inaccesible places there. Me, I'm a kind of resort amenties guy, even if I like the wilderness.

Well, much to my delight, today I learned that in fact, there's plenty to attract me to British Columbia, including several new developments targeting the resort second home buyer. Golf is just one of the draws, with Gary Player planning to develop two courses there. Another development is right on Okanagan Lake, and perfect for family retreats. Several more offer townhouses and single-family homes. Best of all, the prices are pretty darn good for what you get. Thanks to the New York Times for pointing this out, and the  Vancouver  Sun for filling in the details. Time to head north.

Here's a peek at some British Columbia offerings.

Bodega Bay Second Homes

Walking around the marina at Bodega Bay today, I ran into some folks on a camping trip from up near Sacramento. They loved looking at the undeveloped coastal hills, and the serene water, and asked me about living here. My usual response: it's expensive, but if you can afford it, well worth it. Well, darm...too bad I was out and about instead of at the computer. Returning to the office, I had an email from Pam Buda, a Santa Rosa agent, who mentioned that in fact, in Bodega Bay,  "inventory is at a nearly one year supply!” What that says to me is that for folks like these out of town shoppers, this is a really good time to try and get the price down.

Of course, everything is relative. They bought 2 acres and a custom house up in Forest Hills (foothills of the Sierras, lots of trees, no snow) for $450K. That probably won't get them a place on the coast of Bodega. And yet, it's certainly worth trying for a match.

Of course, it was also fun to answer their other question: what's the future of development here? My response: no future, if the residents can help it. We like the open space. And of course, that, in a nutshell, is what keeps the prices up. Even with a year inventory, it's not likely that things will come down too quickly. The coast is limited, desirable, and worth the wait.

Investing in Alabama

As the old saying goes, every cloud has a silver lining. In this case, the clouds were in hurricanes that wreaked havoc on the Gulf Coast of Alabama. The silver lining is that the Gulf Opportunity Act of 2005 offers new Federal tax incentives for real estate investors. According to local realtor Tami Roberts, this is a great time to invest in something that you might want to rent for a while, and use later as retirement or vacation property. The Gulf Coast itself is a great place for both of those. It's interesting to note that the area around the coastal waterway there in Alabama is a rapidly growing destination. Check it out... and don't forget to get sufficient insurance to cover your investment.

Read more here.

Alabama Gulf Shores homes.

Housing Statistics: Keeping Score

Lest you go elsewhere for the best real estate news, we thought we'd include the latest Housing stats, which of course are front page everywhere. The median price for the nation was down, but here's the blow-by-blow:

Where:                Median Price:        Up/Down from last year:
Northeast:          $271,000                Down 3.9%
Midwest:             $176,000                Down 1.1%
South:                  $184,000                Down 2.6 %
West:                   $345,000                Up .3%

Funny thing about the West, isn't it? It's kind of like trying to kill a snake...it just wriggles away and grows another tail. Oh well.

Second Homes, Affordable Housing

Call it synchronicity, or whatever you want, but it was neat to pose a dilemma in yesterday's blog and find a solution today. Yesterday we talked about needing affordable housing in the coastal county of Lincoln, Oregon, where most homes are second homes. Today, I read of a very novel solution, from the 'other' coast, the Hamptons in New York. A new housing complex under construction in Southampton has 36 market rate units and 14 subsidized workforce units. The market rate, 2,000 square feet flats are selling out fast to Manhattanites for their second homes, going at about $700k upwards. The affordable housing will sell for $185,000 to $325,000, depending on the families income, and will be available only by a lottery administered by the local housing authority.

I'm quite impressed to read about such a unique solution. Three local builders are behind the development, modeling how the housing industry can cooperate with local needs and  make a difference in their community. Hats off to Southampton and the builders, Charles Mancini, Tom Datre and Anthony Panza.

Read more about second homes in the Hamptons.

Oregon's Second Home Dilemma

Second homes can be a great boon to an economy, yet sometimes, too much of a good thing can have unforeseen impacts. An article in an Oregon newspaper highlights one such dilemma. In the central coast of Oregon, the little county of Lincoln hugs the coast, going inland at most 15 miles or so. And, the coast is coveted for second (or even third) homes, as we all know. However, Lincoln county also wants to create affordable housing and  deal with the homeless in its borders, and solutions to both of these problems becomes impractical when all the land prices are driven up by second home buyers. The county is in a tough place...it loves the ability to host second home owners, and, it knows it has an obligation to take care of the less fortunate in its community.

Their second home statistics are almost staggering. The county issued permits for 1,000 new housing units in the past year, while the population has grown by only 100, pointing to a huge increase in second homes. Even without the new permits, 30 to 40 % of the current housing stock are already second homes. And there's been almost a 35% housing price increase in the area, with no signs of a slowdown.The good news is that the county is committed to thinking out of the box to house the homeless while keeping the boon of second homes.   We say, 'good on ya,' Lincoln, for stepping up to the plate and taking care of all your community needs. And...good luck. When you've got coastal land, you've got tough choices.

Check out housing in the Lincoln Area.

MLS Goes Green in Portland

If buying a home that meets current 'green' standards is a priority for you, consider looking towards Oregon, and the Portland area in particular. The Oregonian, their local newspaper,  reports that the Portland area MLS will now allow certified users to search for homes according to the green criteria, just like you can search by price or zip code. This makes Portland the first metropolitan area to do this. Portland has long been a leader in environmentally sound housing, cited in 2005 by the Sierra Club for its develpment in the Pearl District. Adding this search criteria to the MLS is yet another first for them.

For more information about finding, buying or building an environmentally sustainable second home, please see our library of articles on Green Buildings.  And keep up the good work, Portland realtors!