Homes on golf courses have traditionally been sought after, but buyers are no longer flocking to these homes as they once were.
Due to lower demand, homes in golf communities reportedly are selling far below the peak prices of the 2000s and have yet to experience the same type of rebound as other areas of the market, Fiscal Times reports. The slower demand has even prompted several golf communities to file for bankruptcy or be in financial distress.
Some developers are finding that building communities with green space, hiking trails, lakes, and swimming pools are attractive to buyers and much less pricey to build too. For example, it can take $1.2 million to operate a golf course annually, versus $300,000 to maintain a lake, according to research by a former CEO of the National Golf Foundation.
Buyers who do purchase a home on a golf course may not even be attracted to golf. Only a quarter of those who purchase homes in golf communities become members of their home clubs, Fiscal Times reports. The National Golf Foundation reports that the number of Americans who play golf has dropped 17 percent from 2000 to 2010.
For those buyers who do love golf, however, they may find plenty of bargains. Some communities nationwide are even offering incentives such as 50 percent or more off the price of the golf membership.
Golf property is still viewed as prestigious too, particularly depending on the quality and the property’s location, says Paul Bishop, vice president of research for the National Association of REALTORS®.
Source: “Fore! Golf Course Homes Are on the Downswing,” Fiscal Times (Aug. 27, 2013)