It’s a buyer’s market for luxury second homes

A Second Home Getaway

(MediaQuire) – Prices for luxury second homes remain below boom levels but are beginning to climb in prime areas and that is good news for buyers.  Buying a second home is a luxury. “A vacation home is the ultimate discretionary purchase,” says Jim Bell, Founder and Managing Partner of Beasley Real Estate.

Sales in many vacation-home markets are surging above the low levels seen in early 2009. According to regional first-quarter reports, sales in the upscale Hamptons resort community in Long Island, N.Y., increased 124% year-over-year, according to the Corcoran Group. In the Reno-Tahoe market, sales of homes priced at more than $1 million doubled in Tahoe City, Calif., and were up 33% in the lake’s East Shore in Nevada, reported real-estate firm Chase International.

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Buyers are starting to come back and the confidence level is up, but they seem to be taking a more modest approach to lifestyle decisions, says Shari Chase, founder of Chase International, a leading agency in Lake Tahoe. Chase says trophy properties such as Tranquility — her $100 million listing — will still sell, but she says she expects wealthy buyers to own fewer luxury homes than they did during the boom.

“There are a lot of good deals to be had,” says Susan Breitenbach, senior vice president and associate broker for the Corcoran Group. “It’s still a buyer’s market and that’s what driving it. That’s why people are buying now.”