Top 5 Bargain Places to Buy a Vacation Home

This story was originally published on AOL on May 26, 2008. Figures updated on August 27, 2008.

CREDIT-CRUNCH-SQUEEZED homeowners and investors are unloading their second homes en masse, offering up desirable vacation properties at some pretty steep discounts.

"When the market is down and there's blood in the streets, someone else's misfortune could work in your favor," says Ken Kamen, president of New Jersey-based Mercadien Asset Management. Buying now entails some risk, however. After all, prices could drop even further. But for those looking to hold a property long term for a family vacation spot or eventual retirement retreat should feel confident that they'll recoup the investment, he says.

Here are five places where vacation-home bargains abound:

Why Buy Now: Besides the weather (temperatures rarely dip below the 60s, even in January) a new international airport is slated to open in the next couple of years. With it comes low-cost carriers and an abundance of nonstop flights. (Currently, flying from New York involves at least one connection and travel time of anywhere from 4.5 to 13 hours. In comparison, a nonstop flight from New York to Orlando takes about two hours.) That ease of access should help boost tourism — and property values, says Anil Pereira, CEO of SecondSpace.com, a property-finding service. "It'll be more feasible to own a second home there," he says. "People will be able to fly in for the weekend."

Why Buy Now: A popular destination in the 1950s and 60s, the Poconos is experiencing a resurgence. "[Baby boomer] buyers are looking in their comfort zone; places they know and love — and probably also where they vacationed as a child," says Christine Karpinski, a spokeswoman for HomeAway.com, a vacation rental site. During the housing boom, home prices in Pennsylvania didn't climb as high as they did in some other parts of the country. As a result, home prices in the four-county Poconos area haven't been as hard hit in the current slump.