It may seem counterintuitive, considering everything that’s gone on in the real estate market in recent years, but this may be the absolute best time to buy a vacation home. I don’t mean just because prices are down, but also because second home buyers’ outlook is up.

We’ve been reporting for some time that Anna Maria real estate sales are exploding, but it wasn’t until I read a Wall Street Journal analysis that I realized that we’re not alone. In fact, much of the luxury and second home market around the country is on a major upswing.

According to the Journal, buyers have frugality fatigue. They’re tired of waiting for the right time, the bottom of the market or for their tax advisor to give them the green light. They’re moving forward with cash in their pockets and creative lifestyles in their heads.

As we all know, location is the key to real estate, and around the country, it doesn’t matter if you live on a beach or a ski slope, your property is being eyed through second home buyer eyes. Although the second home market experienced significant drops in value according to the National Association of Realtors, 25 percent from 2006, it was pretty much in line with the 22 percent drop for overall housing in the nation. I found these to be interesting numbers proving the second home market never really collapsed in spite of a national recession.

In May, the National Association of Realtors also reported that most second home or vacation buyers aren’t necessarily looking for vast amounts of appreciation. Most of them, more than 80 percent, are purchasing vacation homes to live in and enjoy, which could explain why this discretionary market held. And not surprising, cash is king, with 36 percent of vacations homes purchased in 2010 being cash transactions.

In addition, even for the most altruistic vacation home buyer, there are tax advantages to buying a vacation home. For the moment at least, if you do have a mortgage on a second home, the interest is deductible.

However, as of this writing, the second home mortgage interest deduction is in the crosshairs of Congress as one of the many tax deductions proposed be eliminated in order to increase revenue. You can also setup your second home as a rental and still use it 15 days a year which would allow other tax deductions for things like maintenance and rental fees.

Santa Barbara, Calif.; Aspen, Colo.; The Hamptons, N. Y.; Hilton Head, S. C.; and Palm Beach, Fla.; are some of the traditional second home markets that are seeing substantial activity. Buyers are snapping up homes in these areas and others where the median home price five years ago was over a million and is now selling for 30 to 40 percent less.

If your intuition is screaming, buy that home on the beach buy that home on the beach, maybe it’s time to pay attention before the time to buy becomes nothing more than a missed opportunity.

And if I know my baby boomers, missed opportunities are something they never experienced.

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

02/28/2013 260,000 230,000 522 Pine Ave. # 5d 822 2 Br/1 Ba Condo
02/01/2013 499,000 480,000 142 Crescent Dr. 1282 116x111 2 Br/2 Ba SFR
02/07/2013 4,495,000 3,425,000 102 Mangrove Ave. 6483 115x125 4 Br/5.5 Ba SFR
02/13/2013 849,000 795,000 868 N. Shore Dr. 1490 50x110 4 Br/2 Ba SFR
02/14/2013 1,195,000 999,900 749 Jacaranda Rd. 2832 50x100 5 Br/3.5 Ba SFR
02/14/2013 599,000 547,000 301 S. Bay Blvd. 1500 61x116 3 Br/2.5 Ba SFR

Bradenton Beach

02/15/2013 399,000 400,000 2312 Gulf N. Dr. # 106 1180 2 Br/2 Ba Condo,

Bank Owned

02/19/2013 159,900 145,000 2312 Avenue C # 9 651 2 Br/1 Ba Condo
02/19/2013 169,000 160,000 611 Gulf N. Dr. # A12 794 2 Br/1 Ba Condo
02/21/2013 333,000 300,000 1000 Gulf Dr. # 3 480 1 Br/1 Ba Condo
02/27/2013 239,000 205,000 1301 Bay N. Dr. # 5b 1079 2 Br/2 Ba Condo
02/28/2013 99,900 114,500 117 7th N. St. # 25 594 1 Br/1 Ba Condo,

Short Sale

02/28/2013 135,000 122,000 611 Gulf N. Dr. # D24 745 1 Br/1 Ba Condo
02/22/2013 389,000 368,000 108 5th St. S. 764 42x98 2 Br/2 Ba SFR

Holmes Beach

02/01/2013 649,000 610,000 2700 Gulf Dr. # 204 1350 3 Br/2 Ba Condo
02/05/2013 399,000 385,000 6500 Flotilla Dr. # 225 1793 3 Br/2 Ba Condo
02/15/2013 369,500 350,000 7100 Gulf Dr. # 105 1081 2 Br/2 Ba Condo
02/22/2013 180,000 186,000 201 35th St. # 3 630 1 Br/1 Ba Condo,

Short Sale

02/26/2013 325,000 315,000 26 Seaside Ct. 978 2br/2 Ba Villa
02/26/2013 549,000 525,000 207 55th St. # A 1232 3br/2 Ba Villa
02/01/2013 679,000 650,000 417 Clark Dr. 2400 3 Br/2.5 Ba SFR
02/08/2013 565,000 535,000 520 70th St. 1296 85x103 2 Br/2 Ba SFR
02/15/2013 158,900 145,000 445 62nd St. # B 588 1 Br/1 Ba SFR
02/20/2013 335,000 330,000 5617 Gulf Dr. 1076 58x105 2 Br/1 Ba SFR
02/28/2013 579,000 535,000 205 68th St. 1384 75x100 3 Br/2 Ba SFR

 

Source: Manatee County Property Appraiser’s Office