When the Bottom Arrives, Will Second Homes Be on Top?
Kenneth R. Harney wrote this piece in Realty Times this week suggesting that 2009 will be the year housing begins to level out, largely due to favorable rates and lower prices across markets.
If Harney is right, this will be a very good year in terms of seeing light at the end of the housing market tunnel. Heavy hitters like GOP Sen. Lindsey Graham of South Carolina have even suggested nationalizing banks to aid this process along and help first-time buyers. But what about encouraging second home ownership too? This would be common sense if our nation needs to lower inventory.
Much of the run up during the bubble was due to people buying second homes. We all might recall the extensive second home studies that said some 77 million baby boomers were going to drive that train. Where did they go? Could there be a few million of them who still want second homes?
The sour economy might just make buying a second home these boomers can enjoy during their retirement a good investment idea, especially when we see so many tourism-driven markets slumping. Perhaps leaders in Washington will have the courage to explore tax credits or other incentives to get these able boomers buying in greater numbers?
