The summer of 2009 is shaping up to be an historical window of opportunity for buying fun and affordable vacation homes. Mortgage money is flowing again, interest rates on safe and secure fixed-rate loans are extremely attractive, and the inventory of deeply discounted condos and houses in popular vacation destinations is ripe for the picking.

According to a recent article in the National Association of Realtors (NAR) publication Realtor Magazine, prices have dropped up to 50 percent in some of America’s top vacation home markets. But that does not mean that sales are in the doldrums. Buyers are starting to step in and make offers to purchase before the deals disappear and while mortgage rates still hover near historically low levels.

Foreign nationals have also recognized the value of properties throughout the nation, especially in world-famous hotspots like Miami and South Beach. Buyers from other countries are responsible for about 10 percent of recent real estate purchases. That kind of eager buyer participation is giving the market for vacation homes added traction, and many economists expect that the lowest prices are already slipping away as real estate regains its footing.

A recently published NAR vacation home survey found that 27 percent of vacation home buyers considered the purchase a way to diversify their investments. Many bought in order to enjoy extra income ownership of a rental property that they can later convert into a retirement home.

But prized properties in the most desirable destinations are still up for grabs. Fortune Magazine recently included San Diego, Miami, and Washington, D.C., for example, in its list of cities offering the best discounts for 2009. Vacation homes in Marco Island, Fla., had fallen about 27 percent by the end of 2008 compared to the previous year, and during the same timeframe Napa, Calif., vacation homes became more than 20 percent cheaper. Other bargains include Mystic, Conn.; Point Pleasant Beach, N.J.; and Sunriver, Ore.

Traditionally high-priced Palm Beach, Fla., real estate is also significantly undervalued, having pulled back drastically from peak levels when the artificial speculation-fueled real estate bubble pushed prices far above realistic valuations. Just a few years ago, it was virtually impossible to touch ocean-view properties in Florida for less than a quarter of a million dollars. Now the condos are selling for as little as $100,000. Some shoppers see the opportunity as a rare summertime “two-for-the-price-of-one” sale.

Brokers also report that prices per square foot in many condo developments in ultra-popular South Beach – which is globally celebrated as the “American Riviera” – are down 20-25 percent compared to last year. They point out that while “SoBe” was the last section of Miami’s large real estate grid to succumb to lower prices, those “last to go” neighborhoods are historically the first to bounce back and regain lost value. One outstanding example of recent real estate rarities is a downright aristocratic South Beach penthouse that sold for about $7 million after originally going on the market for close to $20 million. The spectacular home occupies in excess of 7,000 square feet and has its own rooftop swimming pool and more than seven bathrooms. That may make it a rather sensational exception to the norm, but a $13 million discount certainly helps to exemplify and underscore the vacation home price reduction phenomenon.

Owning a vacation home means no more hassles with reservations and no need to pay premium prices to get away during peak holiday weekends. Those who rent out their vacation getaways can also deduct part of their travel expenses when they visit those homes, because checking on properties for the purpose of oversight and upkeep is a legitimate part of the business of being a landlord or investor. Pick prime weekends to combine business with pleasure, and then rent out the condo to others to cover the mortgage expenses. Realtors can handle all landlord tasks for a nominal fee, which makes it easy to manage vacation properties even if they are far from home. So for anyone who wants to enjoy the convenience and savings of owning a holiday home, the current vacation season has plenty to offer.