Study: RV Resort Lot Sales Rebounded in 2011
Representatives from BowStern, an integrated marketing firm specializing in the RV industry, announced today (Jan. 5) release of their recent study examining RV real estate industry performance in 2011.
The study looked at sales from 17 properties representing seven states, which tracked average number of lots sold, price points and square footage for 2011. The numbers show a strong rebound in 2011 compared to other segments of the real estate market, according to a news release.
Most segments of the real estate market had a dismal 2011, considering significant retraction by financial institutions loaning money for real estate projects and immense availability of inventory for consumers. The Commerce Department reports that new-home sales rose 1.6% last month. That’s less than half the new homes that economists say should be sold to sustain a healthy housing market. There is a shining pocket of activity in the real estate market though.
RV resort real estate sales appear to have positively spiked in 2011. According to self-reported data from 17 properties across the nation, year-end sales are up significantly from 2010. A quick snapshot of this market showed:
- Reporting properties sold an average of 27 sites in 2011. This reflects an average of 44.75 % increase among reporting properties.
- The average size of the sites was 3,500 square feet with the smallest reported site at 1,200 square feet and the largest site at 5,000 square feet.
- The average price of the sites was $130,593 with the lowest reported price at $42,000 and the highest price at $419,000. Sales prices were not up significantly from 2010.
The data, which includes new construction as well as resales, represents a wide range of product from new resorts such as Heritage and Bella Terra on the Gulf Coast in Alabama to long-established projects such as Pelican Lake in Naples, Fla., and Motorcoach Country Club in Indio, Calif.
“From a marketing perspective we are seeing an increase in inquiries across the board,” said Tom Derzypolski, president at BowStern. “Response to print, online, social media and direct mail indicate the consumer is starting to really explore ownership opportunities. The difference is that the period of time between first inquiry and closing is taking a little longer than we experienced in the years prior to the current economic downturn.”
Baby Boomers by an overwhelming majority represent those who purchased in 2011.
“Boomers took a hit to their investment portfolio, but I believe they have decided it’s time to get out there and live again. These folks are not just going to sit in their rocking chair and get older – these are the folks that put a man on the moon and went to Woodstock, you can’t slow them down,” said Derzypolski.
While BowStern’s expertise is in the world of integrated marketing, they conducted several focus groups at the Family Motor Coach Association (FMCA) convention last August to better gauge the mindset of the consumer. In addition, they completed their online consumer survey in December. The survey can be viewed at www.RVSurvey2011.com. This recent real estate study was an attempt to gather information on behalf of their clients.
“We have seen a nice uptick in 2011,” said Tripp Keber, COO of Bella Terra Realty Holdings LLC. “Our properties weathered 2010 and look to have had a really nice 2011. Being able to see the collective trends of the marketplace is helpful in making business and marketing decisions across the board. The kind of information BowStern provides is a helpful snapshot for us and other properties across the nation.”
The self-reporting study was not paid for or underwritten by any organization and was an attempt to gather data on this niche real estate segment.