In a recent news release, the National Association of Realtors® 2013 Investment and Vacation Buyers Survey reported Vacation homes sales were up by 10.1% Nationally in 2012. As nice as that sounds, it’s still not up to the numbers we saw before the downturn.
According to the news release, 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.”
Along with vacation home buyers, investors have been the major purchasers for the last two years in this market buying up the distressed properties and using cash to do so. Fifty percent of purchases made by investors were paid in cash. Those who did finance their investment properties made large down payments.
The 2013 Investment and Vacation Buyers Survey survey also detailed who were buying vacation homes:
- 80% will use the vacation home for vacations and retreats
- 27% will use the property as a future primary residence
- 23% will use it as a rental
- 23% saw the vacation home as a good investment
- 11% purchased the vacation home for another member of their family
Survey Report provided by the National Association of Realtors(r)