Throwing Money At Second Homes
This NY Times story explains how easily people in the US buy into the second home phenomenon. "Paul and Ann Hill, a pair of retired Atlantans, stopped in Ashland, Ore., in 2001. Their only plans involved dinner and a play at the long-running Oregon Shakespeare Festival. "We came into this town one day and bought a house the next."
"In the first three months of 2005, 91 homes were sold in Ashland. The median home price of those sales, $403,700, represented an increase of 32 percent over the first quarter of 2004."
"'People come there to see a play, and they fall in love with the town,' said Roy Wright, an appraiser. 'And they walk in one of those real-estate offices downtown and buy a house.'"
This guy has a new saying. "Like many Ashland newcomers, Davis hails from the San Francisco Bay Area. 'It's not if you came from California, but when you came from California,' he said."
Where ever the locale, the result is the same. "The influx of outsiders seeking second homes has had an explosive effect on housing prices. An example is Taos, where the value of residential real estate sold in 2004 was nearly twice the value of that sold three years earlier."