Although much of the US is still lagging behind a few areas that attract customers with deep pockets are beginning to turn around a bit. In the resort area of Pikes Peak in Colorado new home permits were up about 7% in April from March of this year. This is a 50% increase over 2009 numbers.
Foreclosure filings were also down by about 21% from the same time last year. This indicates that at least the local area is beginning to stabilize and should improve values of homes for sellers and those trying to keep their home.
One point must not be overlooked when examining the values of homes and stability of local economies that attract a lot of second home buyers. On the one hand unaffected buyers may be attracted to deals they may have waited to purchase and second homes are not normally protected in bankruptcy.
This means if someone owns a second home that has a high value they are more likely to get very creative in their methods to keep these properties. Many vacation homes may become permanent rentals or they may be transferred to family members.
“We have a lot of catching up to do, based upon where we’re at year-to-date this year and based upon last year. But all the indicators are moving in a positive direction, which is good.”Building permits are a measure of the health of the homebuilding industry; when times are good, and consumers are confident about their jobs, they’re more inclined to buy new homes. When the economy slumps, so does the industry.