Cape Cod Calls Value Hunters

With home prices dropping faster than locals can name-drop "Kennedy," Cape Cod, MA has become a buyers' market, says a Boston Globe writer. "Statistics, market trends, and reality on the ground make buying a Cape vacation home one of the no-brainer investment decisions of 2008," writes Kris Frieswick. But who should buy? "Those with a 20 percent down payment and pristine credit to meet banks' new stricter requirements and no need to sell an existing home in this tough market." 5 towns where prices have dropped most from 2005-7: Hyannis, Bourne, Mashpee, Centerville, Provincetown. Frieswick notes that some areas have retaremained strong: "Chatham values have merely flattened. Cotuit never stopped appreciating in value." So shop carefully. But you know that already, don't you?

Hot Spots Could Be Ripe for a Cooldown

These areas saw some of the biggest gains in vacation home sales between early 2001 and 2005. Now many of these markets are beginning to cool, says Fiserv Lending Solutions.

               Av Gain (2001 - 2005) Gain (2005 - 2006)
Cape May, N.J.                 16%               9%
Cape Cod, Mass.                12%               3%
Florida Keys                   24%               13%
Lake Tahoe, CA                 13%                7%

Martha's Vinyard Grows New Varietal

Martha's Vinyard has been a vacation spot for Massachusetts folks and others for a zillion years. Hard to believe that it is only now going "fractional" -- the first high-end time-share on the island, Edgartown Residence Club, is about to welcome owners. Located in the heart of Edgartown, it has six one- and two-bedroom condominium-type units for sale on a fractional basis. Prices? Take a deep breath: from $90,000 to $290,000. Martha's Vinyard Times points out it's only got 12 owners per unit, who must buy at least four weeks of usage per year.

You Paid Too Much

If you just bought a second home in Naples, Fla. you probably paid nearly double what the property is really worth.

A Barron's study based on info from National City, a Cleveland banking and mortgage outfit, says homes there are overvalued by 96 %. Second on the list is Port St. Lucie/Fort Pierce, Fla. Top 10 overvalued cities include Tucson, Prescott and Phoenix in Arizona; Bend, Ore.; Napa, Calif.; Barnstable, Mass.; and Ocean City and Atlantic City, N.J.