As we move through the second half of the year, many of the people who contact us about buying cabins first ask if the challenges from COVID have affected the market. It’s a great question, and something we are constantly monitoring. The answer, though, is not really. The condition we were in with our market through most of 2019 still holds true today. We have a shortage of properties – especially with vacation cabins – and a flurry of ready, willing, and able buyers who are looking to own a second home or investment property in the Smokies. I do still expect there to be some people who need to get the cash out of their cabins for other life pursuits and may be under some pressure to sell, but this is still a sellers’ market. I don’t foresee that changing this year.
The number of buyers hasn’t dropped off, either. This is due to lowered interest rates on financing and a strong tourism market that keeps the rental cabin business profitable. Cabins are booked solid through September and we are seeing an uptick in the number of visitors to the area. Many of those bookings have been scheduled at the last minute. Our guests can stay in a cabin and practice social distancing just as easily as they can at home, so many people find that appealing.
New construction is still an option, too. It’s taking a little longer and it’s still as painful as ever. We’ve seen price increases in lumber and other materials, but lenders are still offering loans on new builds and the rates are as competitive as buying an existing cabin. So, it’s still a viable option if you’re in the position to be patient with the process of waiting to make your money back while it’s being built.
The most important thing to keep in mind is that the rental vacation market is still very strong. We are excited for people to come and visit our area, enjoy the national park, and enjoy the comforts of our vacation cabins. Just remember to be wary of your surroundings, be respectful of our residents and other guests in what is a difficult, stressful time for a lot of people, and bring your mask. But most of all, enjoy the treasures that are here, and enjoy the time with family and friends who come with you!