slide 3-1 the recreation and lifestyle market chapter 3

Slide 3-1

The Recreation

and Lifestyle Market

CHAPTER 3

Slide 3-2

Picture the Market

What does vacation

home mean to you?

Major factor—favorite

recreational activities

Slide 3-3

What Motivates Buyers?In

vest

ors

Life

styl

esLi

fe S

tage

s

Rental Income—the same features attract renters and buyers Value Appreciation Part time use Shared ownership

Enjoy interests and hobbies Snowbirds Refuge from urban life Luxury Splitters

Retirement or pre-retirement Family time with children and grandchildren College student housing

Slide 3-4

Slide 3-5

Know Your Buyer ProfileBU

YERS

LOCA

TIO

NS

PRO

PERT

IES

National data puts the local market in perspective

Most 2nd homes—Florida, California, Texas, Michigan Most 2nd homes per capita

Maine, Vermont, New Hampshire, Alaska, Delaware, Arizona, Wisconsin, Montana, Hawaii

Coastlines, rivers, lakes, mountains Single family homes Purchase is always discretionary

Slide 3-6

Vacation and Investment Properties Market Share

22%25%

28%

22% 21% 21%

17% 17%

27%24%

12% 11% 12%14%

12%9% 10% 10% 11% 11%

0%

5%

10%

15%

20%

25%

30%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Vacation & Invesment Properties Market Share

Investment Properties Vacation Properties

Slide 3-7

New and Existing Home Sales (000)

1,572

2,003 2,317

1,646

1,221 951 801 749

1,233 1,207

850 872 1,019 1,067

670 436 471 469 502 553

-

500

1,000

1,500

2,000

2,500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

New & Existing Home Sales (in 000s)

Investment Properties Vacation Properties

Slide 3-8

Median Sales Price

$148,000

$183,500$150,000

$150,000$108,000 $105,000

$94,000$100,000

$115,000

$190,000$204,100

$200,000 $195,000

$150,000$169,000

$150,000$121,300

$150,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Median Sales Price

Investment Properties Vacation Properties

Slide 3-9

Who is the typical buyer or investor?

What kind or properties do they purchase?

When are the properties used?

Where are properties located?

Why and how do buyers purchase?

Get to know your client

Slide 3-10

Typical Buyer

Under 45 years (46%)Two incomes in householdMedian income $92,100Second largest group 55+ at 31%

Slide 3-11

Profile of Homes

Time rented Investors—55% Vacation-home—23%

Distance Investors—21 miles Vacation-home—435 miles

Slide 3-12

Ten Trends for Second Homes 1. Growth in high-population areas2. Diversified economies fare best3. More multi-unit structures--condos4. Education and income are better predictors than age5. Married couples, empty nesters largest group of buyers6. Increasing diversity—1 in 4 minority households high income7. Buyers want low crime, low cost of living, safe-house refuge for

foreigners8. Knowledge-economy workers can work from anywhere9. Annual increases of 200,000 units10. Growth: South 50%, West 30%, Northeast 10%, Midwest 10%

Slide 3-13

Waterfront Property

Proximity and accessRiparian rightsIntended activitiesHigh groundDock spaceNavigationWater level and temperatureBeach migration and erosion ?

Slide 3-14

Golf Resorts

Year round climatesMatch for skill and

strength levelVariety of coursesClub duesDistance to courses

?

Slide 3-15

Parlay Your Own Interests

Arrange a trip with a good client to try out golf

courses, ski runs, fishing, climbing, hiking…

When the client finds the right location, hook up

with a local real estate professional for a

referral.

Slide 3-16

Ski Areas

SI/SOLiftsTransportation to

slopesSun exposureIndoor parkingSki storage

Is there a hot tub?

Slide 3-17

Hunting and Fishing

Highly regulatedLicensesSeasons and limitsLocal rules and customsGuide services, dressing out, storageBest fishing spotsWild plant gathering limits

Slide 3-18

Birding

Fastest growingnature hobby

Best locations?Bird trailsLocal rules

Slide 3-19

Unexpected Locations

Military basesAcademic communitiesSmall towns and ruralWhere else?

Slide 3-20

Student Children

Better value than room board in the dormitory

Income from roommatesseasonal renters

Proximity to campusParents need lists of service

providers for repairs andmaintenance

Graduation = resale