Real Estate Investing

There are few things in life that provide balm for the soul like a nice, long vacation. A recent post spotlighted the hot Texas real estate market, particularly for retirees and the second home/vacation home market. Well, that got my Generation X mind thinking of all the vacation home possibilities for the rest of us.

We’re the ones who haven’t exactly hit the pinnacle of our careers yet and may not be able to plunk down the change for a vacation home, timeshare or even a standard weeklong rental rate. Where does that leave us? Dwindling away in Cubicle City, waiting for the magic fairy to save us? No! In fairness to my Internet-minded generation, this post’s for you.

Craigslist is a great first stop for budget-conscious seekers of vacation rental properties. Considering it is a worldwide online buy/sale/network community, this San Fran-based site is policed quite well for scams and frauds. This site is nothing fancy, no bells and whistles, but has proven a goldmine for yard sales, unique furniture, kids’ toys — and yes, vacation rentals. Just click on your city of choice, then click on “vacation rentals” under the “Housing” category and away you go. It’s all about eliminating the middle man. Great deals abound, especially during the off-season.

There is also a Craigslist link to “housing swap.” This idea really gained popularity after being prominently featured in last year’s film, The Holiday. Incredulous that such a concept could actually happen, I researched it and found that people do indeed swap houses for a week or so. Does the idea of giving perfect strangers the run of my house while I’m away creep me out? Well, yes actually, but different strokes for different folks. While primarily done with vacations in mind, there is a growing trend of swapping houses for actual real estate purchases.

So there you have it! Two innovative ways to find your next vacation rental on a budget. Has anyone had a glorious or horrendous experience with either of these options? Love to hear about it in a comment post!

Florida, highly touted for its vacation real estate and winter homes for snowbirds, has seen serious competition from the Lonestar State in recent months. In fact, Texas has moved into second place behind Florida in terms of popularity among retirees, according to a recent national study by the University of North Carolina-Asheville.

Some speculate that this is because oil is such a major economic player in Texas and, as we are all painfully aware when standing at the pumps, oil is gold right now. Thus, Texas’ overall economy has been helped. Others speculate that states like Florida have seen their day and are now experiencing the fallout from the housing boom of the last couple years. Another theory is that the Florida housing market has been hurt by hurricanes, something Texas has not really had to deal with.

At any rate, the Florida Association of Realtors reports the existing median home price in Florida is $237,500. That’s a bit higher than the average U.S. median home price of $223,800 in the second quarter of 2007. Texas is seeing an average median home price of $193,300. The following are some median home prices in individual Texas markets that boast the highest vacation and tourism traffic.

Texas is seeing an overall increase in home prices, while individual market results are mixed. A few individual markets in Texas have seen dropping prices, but only minor. The overall picture remains robust in the midst of considerable drops in real estate pricing in states like Florida. In fact, Florida home sales are down 26 percent and home sales nationwide are down 2 percent, according to the Florida Association of Realtors. Texas, meanwhile, is enjoying an average 5-month inventory on real estate and a 5 percent increase in average home prices over this time last year.

Texas home prices will likely keep climbing as the state’s popularity grows. There will eventually be a fallout like Florida has experienced, but it really can’t get cheaper than it is now. The U.S. Census Bureau expects Texas to hold 30 percent of America’s population by 2030. Florida and California will account for another 30 percent, the bureau predicts. Bottom line: To get the most house for the money and the greatest potential for future return on investment, carpe diem in the Lonestar State.