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Recreational Property: What's In, What's Out for 2009

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Everyone knows that last fall's financial squeeze put a huge damper on real estate sales. In many areas sales have slowed to a trickle. This has been particularly true with recreation properties and in the second-home markets. Interested buyers, sensing a continuing downward pricing trend, simply chose to wait on the sidelines to "see what happens".

Already, though, many market followers and savvy consumers are starting to believe that the bottom in the market may have been reached. Super-low interest rates, discounted prices and great selection may, in fact, make this an excellent time to buy. So now here's the question -- as real estate buyers return to the recreation real estate market, what changes will there be on their wish lists? What new viewpoints will they have as they renew their interests in owning a vacation property?

Here's a look at what we believe second-home and recreational property buyers will be looking for in 2009.

Big is out; Sensible is in
The new buyers are more focused on the enjoyment of owning the second home and spending quality time there with their family and friends. They're less concerned with the investment potential or the status symbol of owning a "trophy" home. This year's home designs will be scaled down and have more of a family and intimate entertaining focus. While luxury trophy homes may be out (for now), buyers will still enjoy high quality -- they'll just want it to be designed more responsibly and environmentally and with greater value per dollar spent.

Another major shift is the increased focus on health and fitness. According to a recent Resort Real Estate Survey*, "Increasing desire for quality time with family and friends and passionate pursuits of good health and wellness remain key drivers of household decisions." These passionate pursuits in Chelan, Washington include ample opportunities for enjoying the outdoors in all four seasons, such as boating, skiing, fishing, hiking, biking, snow mobiling, cross-country skiing, horseback riding, kayaking and many more. Golf is still on the list, of course; it's just that this year it seems it is not an essential requirement for selecting a recreation community.

Back to Basics
Many recreation community buyers in the past have sought out luxury amenities, such as concierge, fine dining opportunities and exclusive clubs. This year, forget "luxury and extravagance" and think "sensible and responsible". These new buyers are looking for vacation homes that provide a strong sense of community where they'll "fit in". Opportunities to walk the dog to a neighborhood park or a liesurely hike to a viewpoint to enjoy an evening sunset are more important than the availability of in-house massage facilities. Outdoor kitchens and patios to entertain gatherings of friends and family are valued more than having fine dining just down the street.

Recreation property buyers do want, though, to be close to culturally interesting places with opportunities to enjoy music, theater and wine-tasting and to continue their educational pursuits. It's not just about relaxing by the pool in the sun; today's buyers are looking for new ways to extend themselves, increase their social circles and enjoy their family time.

Along with this "back to basics" attitude comes a new interest in authenticity. To appeal to this new view, successful recreation communities will have genuine qualities with enduring value. These will be the places which will never lose their appeal and as children or grand-children grow up, the family will still enjoy the purchase made today long into the future.

* Resort Real Estate Survey, Christopher Kelsey & David Norden, April 21, 2009.