June had its ups and downs in the real estate market, both nationally and in local markets. On the national level the number of existing homes sales in June was down 3.8% from May of this year and down 11.4% from June of 2006. The good news is that it was the first time in 11 months that the median home price was higher than it was a year ago! (You can view the complete report on this website in our archives of articles.)

Local areas, however, vary. This is one of the reasons why it is important to talk with a Realtor who is knowledgeable about what the market looks like in your local area. The Smoky Mountains in Haywood County, North Carolina (which includes Maggie Valley and Waynesville), for example, saw a 22% increase in the number of home sales from May to June of this year, although in comparison to June of 2006, there was a 44% decline in the number of home sales. Home prices, however, continue to rise. From May to June of this year the average selling price increased 6%. Additionally June, 2007 saw a 5% increase in the average selling price when compared with June of 2006. The Buncombe County market (which includes Asheville, NC) also saw an increase in the number of sales from May to June (11%) but a decrease from a year ago (18%). In contrast to the Haywood County area, the average selling price in Buncombe County in June 2007 dropped slightly (2%) when compared to a year ago but increased the same amount (2%) when compared to May of this year.

The housing market was a bit different for lake front properties at Lake Lanier in Georgia. The market saw a 45% drop in the number of homes sold this June as compared to a year ago! The average home price also dropped (19%) when comparing this June to a year ago. The good news is that the number of home sales is on the rise. June saw a 17% increase in the number of home sales compared to May. Surprisingly, although May of this year saw fewer home sales than in June of this year and a year ago, the average selling price was greater than June of this year and of June, 2006!

By now everyone has heard the frequent reports by the media and even many real estate agents that the real estate market has softened since 2005. Well, just how bad was 2006 and was the second home market really the hardest hit? The 2006 Vacation Home Survey conducted by the National Association of Realtors has just been released and sheds new light on the the second home market. The truth is that, generally speaking, the housing market did slow (down 4.1%) in 2006 from its five-year-record-setting pace. Additionally, the rate of second homes purchased for investment dropped in 2006 by an incredible 30% (due primarily to speculative buyers). However, while investment home sales plummeted, the sale of second homes purchased primarily as vacation homes hit record high sales (up almost 5%). Vacation home buyers are distinguished from investment home buyers in how long they plan to keep their home. Most vacation home buyers surveyed said they plan to keep their home for 11 years or longer.

The largest percentage of vacation homes purchased was in the south (38%). Water continues to be a big draw with two-thirds of those surveyed saying they want to be close to an ocean, lake, or river. However, fewer than one-fourth purchased in resort locations. The rural market also continues to grow with 29% purchasing property in rural areas.

Projections for the future are also promising for the second home market with more than half of those surveyed saying they plan to purchase another home within two years.

(The complete results of the survey can be found in "articles" on this website)

I've just returned from the Resort and Second Home Symposium in Vail, CO. I spent two days networking with other agents from around the world and learned about many new and exciting properties. I can't wait to share them with you.

While in Vail, I also completed a course with the Institute for Luxury Home Marketing. The training provided new insight about the luxury market, helped me polish my skills, and provided valuable networking contacts with other agents across the country who specialize in luxury properties.