The American desire to own a second
home as a vacation home is alive and well!
The National Association of
Realtors analysis of U.S. Census Bureau data shows there are 7.9 million
vacation homes in the U.S. Their 2013 Investment and Vacation Home Buyers Survey shows
vacation home sales improved in 2012.
NAR Chief Economist Lawrence Yun
said favorable conditions are driving second-home sales:
“We had a strong stock market
recovery, which helps more people in the prime ages for buying vacation homes.
Attractively priced recreational property is also a big draw.”
Here are the key findings from
the report:
Raw Numbers
§ Vacation-Home sales rose
10.1 percent to 553,000 from 502,000 in 2011
§ Sales accounted for 11%
of all transactions last year, unchanged from 2011
§ The median price was
$150,000, compared with $121,300 in 2011, reflecting a greater number of more
expensive recreational property sales in 2012
§ 35% of vacation homes
purchased in 2012 were distressed homes
Buyer Profile
§ The typical
vacation-home buyer was 47 years old
§ The median household
income was $92,100
§ Buyers plan to own their
recreational property for a median of 10 years
§ 29% said they were
likely to purchase another vacation home within two years
§ 78% of all second-home
buyers said it was a good time to buy (compared with 68% of primary residence
buyers)
Reasons for Purchasing
Lifestyle
factors remain the primary motivation for vacation-home buyers:
§ 80% want to use the
property for vacations or as a family retreat
§ 27% plan to use it as a
primary residence in the future
§ 23% plan to rent to
others
§ 23% wanted to diversify
their investments or saw a good investment opportunity
Location
§ 45% of vacation homes
purchased last year were in the South
§ 25% in the West
§ 17% in the Northeast
§ 12% in the Midwest
The vacation home buyer purchased
a property that was a median distance of 435 miles from their primary residence
§ 34% were within 100
miles
§ 46% were more than 500
miles
Financing
§ 46% of vacation-home
buyers paid cash in 2012
The median down payment was 27%, the same as in
2011Please give me a call or send me an email with any questions you may have about our market here in the Wilmington and Beach areas.
Thanks!
Joyce Barnwell
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