"The expanding pool of buyers amidst a dwindling number of bargain-priced properties led to tighter supply and fewer sales," said Lawrence Yun, chief economist for the NAR. "Furthermore, the turbulence that hit the financial markets the second half of the year likely seized some would-be buyers' available cash."
In Hilton Head, South Carolina, real estate agent James Wedgeworth said the lower end of the vacation home market is still good, but anything over $1 million sits. And there is a lot of high-end product available.
"We've got more supply than you can wave a stick at. We're running 18-months supply," Wedgeworth said, referring to the high end of the housing scale. "Markets don't like indecision, and there is a lot of political indecision."
A six-month supply is considered balanced. The low end, he says, is at about a two- to three-month supply, as even the vacation home market suffers from the same lack of low-end inventory as the overall housing market nationally.
The strongest price appreciation in vacation homes was seen in the South, according to the NAR, particularly in Florida. That is for single-family homes, however. Much of Florida is seeing a condominium glut.