Written By: Karen Deis
If a little birdie whispered in your ear that (even with a failing housing market and a failing economy) vacation home sales are on the rise, would you believe it, or shoo the bird away? Don’t be too quick to dismiss the thought because according to NAR’s Investment and Vacation Home Buyers Survey, one-third of the existing and new-home sales for the year (in certain areas of the country) were second-home sales. According to Realtors and vacation home complexes, second home sales increased substantially in 2008—especially in some of the hardest hit areas such as Florida, Texas, and Arizona.
Who are these buyers?
According to NAR's survey, the average age of a vacation homebuyer was 46 years old with an annual median income of $99,000. Why are they buying second homes? Eighty-four percent of those surveyed wanted a vacation home or a family retreat, and 30% plan to make it a primary residence in the future. Gas prices reaching an all time high contributed to vacation homebuyers staying a little closer to home, which led to vacation home purchases typically taking place within 287 miles of their primary residence. With homes priced at bargain discounts, it comes down to simple economics—now is the time to buy.
Second home purchases took place in almost every state, but the most popular were Florida, California, Texas, Arizona, New York, Washington, and Nevada. The NAR survey revealed that:
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