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:
- 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
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
- 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
If you are interested in a vacation home, give us a call! we’ve got the expertise you need to find you the home of your dreams! Call or email today to set up a Buyer Consultation and set a Smart home buying strategy!