Second Homes Equal One-Third Of Sales

Second Homes Equal One-Third Of Sales

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The overall decline in the housing market has impacted the purchase of second homes, whether used for vacation or Brant Point Lighthouseinvestment purposes, but the fact remains that one-third of all real estate transactions in 2007 were for second homes, a percentage that is remaining steady despite market conditions.

The National Association of Realtors issued a press release with their findings last week with NAR chief economist reporting:

 “Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,” he said.  “Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.”

Thus, investors have fled the housing market while second home buyers have flocked in. Together, these second home owners maintained the percentage of homes sold in 2007 as second homes even as the market declined.

The NAR reported that the typical investment home was within easy driving distance of the investor’s main residence, averaging 27 miles away. Vacation homes are quite a bit further away, 287 miles on average, and can be found at popular beach and mountain destinations.

Most of the buyers of a vacation home do so with an eye on providing a family retreat or vacation destination for their families while just over half of the people buying a home for investment purposes are seeking rental income.

Resources

Home Market Values

Home Relocation

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