For those seeking to take out a holiday loan to purchase special vacation property, the market has slowed considerably. These buyers are finding that rates for holiday loans are skyrocketing and banks are much less willing to lend on these finance deals at this time. Numerous vacation properties have now been on the market for over a year, particularly those in a luxury price bracket.”Some buyers simply adopted a wait-and-see attitude,” said Lawrence Yun, the Realtor’s chief economist. “Second homes are discretionary purchases and there is a natural tendency to pull back from big-ticket items in periods of uncertainty. The other factor is the disruption in the mortgage market, with a significant tightening of credit during the second half of 2007.”"The market is really hurting out here,” said Suffolk Research Company’s President George Simpson. In the last three of four months prices have been going down at a somewhat steep pace.”For those still interested in getting a holiday loan, either for a vacation property or just to finance a vacation, experts are urging caution. It may be better to wait for the market to turn around before taking out a holiday loan at this time.
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