2nd-home season

The season for buying second homes is here and shoppers, like loons, are seeking nesting grounds. While second-home sales fell along with the overall housing market in 2007, nearly a third of all homes bought nationwide last year were either vacation or investment properties, according to the National Association of Realtors (NAR). In 2007, sales of vacation homes were down 30.6 percent while sales of second homes intended for use primarily as an investment fell 18 percent compared with 2006. Uncertainty about the economy and tightening credit markets contributed to the sales decline, said NAR economist Lawrence Yun. Marc Kuhnley, an Edina Realty agent who works in the Brainerd and Edina offices, says that certain markets, including the Brainerd lakes area, are bucking the trend. He said that in the $700,000 and above price range there were 72 second-home sales last year compared with 58 in 2006. Sales below $700,000 dropped slightly to 251 from 291 houses in 2006. What's driving that trend? "Baby boomers are buying these properties now rather than waiting 10 or 15 years until they retire," Kuhnley said. And instead of investing in the stock market, "they'd rather invest in a cabin and enjoy it."