Signs of a recovery in the US second home market may be on the horizon.
Kiawah Island Real Estate, the real estate brokerage for Kiawah Island, reports that, up to the end of August, its sales for 2010 are 64 per cent higher than the year before. The company has closed US$159 million in real estate transactions this year, including home sites, single family homes and villas.
Kiawah has just sold eleven new home sites during a limited property release in the Tom Watson Lane development, part of the Cassique residential community (Watson is the signature designer of the Cassique golf course). The property release originally included only nine home sites but was increased to 11 to meet demand. Four more home sites are slated to be released in the coming weeks.
“This property release is a direct response to the market telling us that people want to purchase second home real estate with a slightly smaller footprint, at a slightly smaller price point compared to what we’ve seen in the past,” said Kiawah Island Real Estate president Chris Drury. “The design and plan for this development reflect the trends that while people are not willing to sacrifice quality and value in luxury goods, they are more apt to buy only what they need versus what they can have.”
The price for the 11 sites averages US$525,000, which includes a variety of design plans, making it possible to build a home on the property for less than US$2 million. Each site is approximately one-third of an acre and can accommodate a home as large as 3,500 square feet.
“The fact that Kiawah Island is supported by a financially viable developer, a well funded community association and flourishing resort gives prospective home buyers the confidence that purchasing here is a fundamentally sound investment. It’s because of this combination that Kiawah Island is leading the recovery of the luxury real estate market in the southeast and probably nationally,” said Drury.