MYRTLE BEACH, SC (WMBF) - The prices of vacation homes are rising slightly, but lagging behind the rest of the housing market, according to a report by USA Today.
Why the delay? Economic expert Jed Kolko says its because vacation homes are considered a luxury, and spending on luxury items takes longer to rebound after a "severe recession."
Market trends predict that the housing markets in vacation area lag behind urban centers by about six months.
For example, in the past year the price of a single-family home in Los Angeles has risen by 17 percent. In the nearby resort area Lake Arrowhead, the prices rose by only 3 percent.
So is now the time to buy a vacation home? Experts believe vacation home buyers are looking to buy now because the market appears to be at the bottom.
The USA Today report concludes that vacation home sales nationwide in 2012 increase 10 percent; that's 11 percent of all home sales that year.
WMBF News Anchor Theo Hayes is digging into how this change in prices is affecting the Grand Strand, where many people are know to purchase vacation homes for rentals. Tune in for her report at WMBF News at 6.