Leisure time has always been an integral part of American culture. While every family's vacationing preferences are different, there is no denying how serene it is to pack up and take loved ones to an exotic remote location.
Except, according to a recent article published by The Wall Street Journal, those remote locations are increasingly being traded in for spots that are closer to home. So although some may have been accustomed to taking annual trips to year-round sunny destinations like Florida and Las Vegas, the travel costs associated with getting to these places is becoming prohibitive, even though real estate prices and interest rates are likely at the lowest they will be for the foreseeable future.
According to a recent survey conducted by the National Association of Realtors, in just one year between 2010 and 2011, the median distance that separated a person's primary residence from a vacation home diminished 19 percent, lowering to 305 miles.
For example, the article cites an example of Vickie Leese, a financial advisor from Westminster, Maryland, who considered purchasing vacation property in Florida as well as Myrtle Beach, South Carolina. However, after conducting a cost-benefit analysis, Leese determined that going with a place in Ocean City, Maryland, far closer to her home was the move.
"Florida would require a flight or a 24-hour drive for me, and the Carolinas are eight hours away," Leese told the news source. "Even though the real estate in Ocean City is more expensive, in a way it's more affordable. Even with gas prices skyrocketing, it made more economic sense to buy there."
Considering this information, there are new industry trends of which lenders need to stay abreast in order to maintain relevance to their clients. In order to better keep track of changing client expectations and the rates of geographic locations that may be unfamiliar, lenders would be well advised to invest in lease administration software and a personal loan calculator that can help keep better track.