SEC0NBTI MEAR0UNO Prices on vacation homes around the South

THE
BY MARJORIE FISHMAN
Cottages along the boardwalk at Rosemary Beach, Florida, are in high demand among second-home buyel
SEC0NBTI MEAR0UNO Prices on vacation homes around the South are soaring-and baby boomers are mostly to thank for it,
When Fay Cold and her htlsband, Donald, decided to purcl1a~e their
[,900-square-foot second home seven years ago, it was partly the place
and partly the lifestyle that drew them to S,ltubh !V\ountain in Highlands,
climate with historically low interest rates. Th,·" motivatiom range rron
North arolina. A veteran of the contemporary art world, Cold was
looking fOI' something radically different from the white walls and
affordahle primary housing here compared to other major metropolitar
are,lS and close proximilY to recreation-rich clestinalions. Mirrorin~
national trend~, popular destinations for Atlantans are Ie,s than a six-houl
complexities that go ulong with owning her eponymous art gullery, one
of the largest in Buckhead, und her sprawling, 5,800-squure-foot home in
drive away, and include the Blue Ridge Iv!ountains; coa'>lal areas bet weer
the city. "We wanted u second home because of the: idea of going hack in
time," Cold say~. "Highlands is simple We sweep, plant, hike. Our house
Sa"elnnah and St. Simons Island; and places along the Florida Panhandle
like Rosemary Be;lCh, the tkelches of South Walton and Watersound
in the mountains has little rooms and Ceorgia crafts It's like a time warp.
But unlike the Colds, melny of these second-home buyers are
uninterested in giving up high-tech living in their free time-and arc
And you can lose your identity there-you can meet a whole new society
of people or stay in your pajamas all day'" Just two hours from Atlanta,
Highluncls offers an eusy retreat on weekends with family-though the
Colds regretfully close the house atter New Year's because the icy roads
make it inacceS>lble. "We plan on keeping it forever," she 'u)'s. "It's an
important part or our life.
it's where we let go of big-city life."
This clesire to escape daily life without going too far is a growing
trend nationwide, particularly among baby boomers. More than 33
70
diversifying investment portfolios to reliriflg in ~lyle. The situation is n(
clilfercnt in Atlanta, a major IHarket for >econd-home buyers, given th(
incorporating clements such as built-in elevators into their sJ1rawlin~
mountain "cabins," and tncked-out playrooms with pool tables, wet bar,
and flat-screen televisions "It's not a rustic eahin elt all," <a)'s Nathan Fitts,
owner of Century l.l Profe<;,ional Realty Croup with ofhLes across nortb
Ceorgia. Many of his clients use their primary homes as nothing more
million second homes were sold nationally in 2005, a 16 pel-cent increase
than a rest stop during the workweek, he says, noting that he has ,old tc
several Coca· Cola executives who telecommute from the mountains or
Fridays to extend their weekends.
from 2004, according to the National Association of Realtors. An
estimated one in four baby boomers owns more than one property, and is
[n response to the spike In demand for properties with top amenities,
local real estJte companies like RElMAX Creater Atlanta have created
enjoying the luxury of being at the peak of their earnings in a favorable tax
special
THE: ATLANTAN> DECEMBER 2006
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properties, including two Panam~ City Beach, Florida,
develupments under construction. C Beach Resort, where the average three­
hedroum town home costs $880,000, features 'lIki-stylc floating cabanas
and a penthouse hospitality suite. At the Island Re erve, Atlantan> can buy
in for slightly less-$636,50G--and lounge in the clubhouse's souped-up,
As a re"ilt of the surge in prices, more deve!up[ncnts catering to
second-hume buyers are now advertising "fractional ownership:' the time­
share type of arrangement where owners generally spend more money to
buy in for longer stays (stays, however, that normally amount to weeks, not
Illonths, during the year). ror example, b;[yers opt tu spend $215,000 (and
a nearly $5,000 annual fee) 1'0[" a one-thirteenth [ntere.l at The Oceanfront
Residence Cluo at J)aufuskie Island Resort'" Urc,Hh
pa, where they have
unl[mited ferry access to nearhy Hilton Head, . )uth Carolina and
Savannah. Here, the fully furnished, four-bedroom "coltages" climb into
the millions and come equipped with wireless Internet, Jacuzzi tubs, 10­
foot ceilings and huge screened-in porches. Some res rts, like C Beach
Resort, re oitering both optiol1s uf h[1I and fractional ownership--in its
case, a one-lifth fractional ownership share slarb at around $220,GOO.
Then there is the new hreed of homebuyers known as
"supcrsplittl'rs," whu split their time among at least three different homes.
They include Suzanne Trammell, who recently bought an $850,000, four­
bedroom home on Fripp Island, South Carolina, with her husband, Alex.
As part of the deal, they belong to lhe exclusive Fripp Island Club (for a
media center or frolic among the laguna pools and rock waterfalls.
The high prices, agents say, are not surprising. Atlanta is the largest
market in the Southeast for second homes, so folks are willing to shell out­
and often will spend more on their second homes than on their primary
$20,000 initiation fee), with its 10 tennis courts, four SWimming pool
complexes ancl two championship golf courses. The Trammells use the
bcach house on weekends, holidays and during summer vacations-that
is, when they're not staying in their historic home On five acres in
ones. "Atlantans arc not really scaling down on these secund homes," says
Lewis Clcnn, president ancl chief executive officer of Harry Norman,
Realtors in Atlanta While the national median price for a second home is
$300,000, Blue Ridge and Highlands mountain homes typically start at
$5UO,000. Fitts says he's seen the price of cabins in north Ceorgia more than
triple in the past five years. And it's no different along the coast, where a
retreat can easily top $ ( million-and that's not with an ocean view.
Newnan, Ceorgia, or in their Atlanta pied-a-terre in j\l[dtown. A real
eqate agent with Atlanta In town Real Estate Services, Trammell says she
is not concerned about the broader housing market slowdown. She made
an ea'y $260,000 profit selling her first beach house and a condo on Fripp
after less than three years, and has received offers to rent her new home
for $2,30 ) a week in the off-season
("lost/y, though, she appreciates the family-friendly atmosphere at
Prices at some of Ceorgia's luxury lake communities have soared as
well. ReSidents of Reynolds Plantation, which consistently ranks among
the country's top golfing communities, enjoy five world-class golf
Fripp Island--an essential Feature to this mother of two young
children. "It's not a bunch of college kids with tattoos funneling beer:'
she says, adding that bestselling author Pat Conroy lives two doors
courses, full-service marinas, The Ritz-Carlton Lodge, and the
shimmering backdrop of Lake Oconee near Crcensooro. A recent
down. During the summers, Trammell's children hunt for Blackbeard
(legend has it that Fripp was the pirate's hideaway) and roam freely on
seMch on the property database showed Single-family homes priced
bet,,'een $455,000 and nearly $5 million.
this designated wildlife sanctuary. "It's not really like a vacation," she
says. "[t's just a place we always go to." !'.J
72 THE ATLANTAN> DECEMBER 2006