The National Association of REALTORS has conducted their 2013 Investment and Vacation Home Buyers Survey concerning existing and new home transactions for 2012. The report contains very detailed information about investment and second home buying patterns and today we would like to take a look at some of the numbers and how they relate to the tourist driven market in the Great Smoky Mountains.
The news is good overall, with the report showing an increase of 10.1% in 2012 vs. 2011 for vacation home sales. Investment home sales dipped 2.1% to 1.21 million but remains well above the numbers from the downturn when sales were well below one million. Vacation home sales made up 11% of all real estate transactions last year, the second highest percentage since 2005. As we see news of a market recovery and reports that things are shifting to a seller’s market it is positive for our area to see that this does not apply only to permanent residences but also to owners of vacation rental property.
When we looked at the statistics for the Smoky Mountain region last week we noted an increase in average prices of 12% for Sevier County, Tennessee. This is reflected in the NAR report as well as they show that the median price for vacation and investment homes is up, reflecting a larger amount of more expensive vacation and investment properties being purchased in 2012. We expect to see the trend continue in 2013.
Thirty five percent of investment buyers purchased more than one property with 55% of them stating that rental income was a large factor in their buying decision. Our region leads the market with 45% of vacation homes that were purchased last year being in the South. This is great news for owners in the Smoky Mountain area as inventory decreases and a large percentage of buyers are looking for great rental investments in the area. If you have a second home or vacation rental that you are thinking of selling why not request a free price analysis? You may be surprised by what the market has to offer.
Looking for a great investment or second home? Try out our new search site and gain access to all of the available listings in the area. When the time is right, we are here to help guide you through the process of purchasing your Smoky Mountain dream.
Here Are A Few Of My Featured Listings:
|Amazing Mount LeConte Views Over $28,000 in rental income for 2012! Nicely decorated cabin with fantastic views of Mt LeConte. Enjoy the views from the spacious decking this cabin has to offer. Type: Single Family Home Location: Chalet Village Price: $219,900 Get more information >|
|Gone With The Wind Almost $27,000 income for 2012!! If you have dreamed of having a luxury chalet on top of the mountain with sweeping views of the valley, city and mountains then you have to look at this one. Type: Single Family Home Location: Chalet Village Price: $299,900 Get more information >|
|Beautiful Setting On The River Consistently produces almost $40,000 gross annual income!! Once you see it you’ll never want to leave. Directly on the pristine Middle Prong of the Pigeon River, found to be the cleanest river in the state by the Tennessee Resource Defense Council. Type: Single Family Home Location: Pittman Center Price: $399,900 Get more information >|