Log Cabin Blog

In the last month, I have been getting significantly more inquiries than I have for the last year. There seems to be a pent up demand for Smoky Mountain Cabins and people are wondering when is the right time to buy?

Historically, when there has been a down turn in the real estate market, Sevier County, Tennessee has been one of the last areas affected and one of the first to recover. The increase in my activity indicates to me that we are seeing the first indications of an impending recovery. 

Another indicator of the underlying strength of this market is the fact that rental incomes for quality cabins in 2008 are holding their own relative to 2007 incomes. Even with higher gas prices, better cabins are booking strongly.  Ultimately, a cabin’s selling price is related to its income. So, what’s happening to prices in light of this?

Through the 2nd quarter of 2006 we maintained a brisk sales market. Then it seemed to drop like a stone. Consequently, over the last two years, over all prices have lowered, but not unrealistically. It’s a fact of human nature that the longer a strong sales period goes, the more sellers push the envelope to see just how much they can get for their cabin. So, while there has been a realistic adjustment in prices, they haven’t crashed and appear to have bottomed.

Another interesting wrinkle in the market is that some sellers of top of the line cabins are not offering wholesale price drops but are offering buyer incentives that are more beneficial to the buyer than lowering the price.

So, the market is now ripe for savvy buyers and it appears unlikely that it will get much better. How long will this go? My hunch is that as long as 51% or more of the people come out of the November elections more optimistic than they are now, the Smokey Mountain cabin market will begin its next cyclical up turn.

For your Free guide to buying a Smoky Mountain cabin go to: www.willquinn.com .    

Now that you know why so many people regularly vacation in the Tennessee Smokies, who are these people?

Our guests are Middle Class America. They run the gamut from hourly employees to doctors, lawyers and Indian chiefs. They relish every moment of vacation they can grab and want the most out of it.

Therefore, their accommodations are a top priority. Until the early 1990’s, motels were the major choice of vacationers because that was what was available. Cabins were available in limited numbers but in the 90’s the cabin development boom began in earnest and once motel frequenters experienced a cabin vacation they were hooked.

It’s easy to understand why. While everyone looks forward to their vacation, it’s still a stressful time. Here’s dad (frequently mom too- I’m not being sexist here) who have family contact a few hours a day during the week and a few more on weekends. On vacation, they’re together nearly 24 hours a day and a motel room doesn’t allow for much personal space while a cabin gives everyone some breathing room.

Through the 90’s, the demand was so high that virtually any decent cabin performed well. But as supply caught up with demand the cabin market became very competitive and remains so.

Next time we will start investigating what separates the top producing cabins from the marginal ones.

For your Free guide to buying a Smoky Mountain cabin go to: www.willquinn.com .