For the second-straight year, a significant drop in the sales of vacation homes has occurred among American travelers. According to a report by the National Association of Realtors, rising prices and financial uncertainty contributed to the continued decline, marking a clear trend of restraint among frequent vacationers. The new numbers may also indicate a turn toward vacation alternatives, such as timeshare ownership.
Overall, vacation home sales in 2016 dropped by more than 21% from the previous year, a significant change from years past when vacation home sales were rising extraordinarily. The drop in 2016 was preceded by an 18.5% decrease in 2015, totaling a two-year plummet of 36%. While those seeking to flip vacation homes into investment opportunities continued to make real estate purchases, a volatile financial market caused many who plan to personally use vacation homes to pause.
NAR Chief Economist, Lawrence Yun, attributed the falling numbers to increased prices and shorter supply:
“In several markets in the South and West—the two most popular destinations for vacation buyers—home prices have soared in recent years because substantial buyer demand from strong job growth continues to outstrip the supply of homes for sale. With fewer bargain-priced properties to choose from and a growing number of traditional buyers, finding a home for vacation purposes became more difficult and less affordable last year.”
The median cost of vacation homes rose with the fall in sales, jumping 4.2% to a total of $200,000. The highest since 2006, this new median cost is also playing a large role in the declining sales of permanent vacation homes. With real estate rising in key areas nationwide, vacationers are turning to alternative solutions to meet their travel needs.
This is where the timeshare industry comes into play. As opposed to the plummeting of vacation home sales, the timeshare industry is on the rise, seeing higher occupancy rates and increased attention from potential buyers. With many higher-end resort accommodations falling well below the median vacation home cost of $200,000, it wouldn’t be surprising to see many vacationers formerly considering purchasing a standalone home to turn towards vacation ownership. With many different vacation clubs offering the privacy of having your own home along with all the amenities and services of a high-rated resort, for some, the choice is clear.
Timeshare resales present a viable option to those looking for a permanent vacation solution who may not want the responsibility or financial commitment of buying a new house. You’ll find many timeshare units incorporate a villa-style design that can range anywhere from 1,000 to 2,000 square feet in size, matching that of a small house. Additionally, you’ll be able to take advantage of exclusive amenities like housekeeping, swimming and recreation, room service, and so much more. Browse timeshare resale units in your favorite destinations today for a useful alternative to vacation homes and make a purchase you can feel confident about!