slide 3-1 the recreation and lifestyle market chapter 3
TRANSCRIPT
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