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The National Association of Realtors analysis of U.S. Census Bureau data reveals approximately 8 million vacation homes in the U.S. Also, their 2014 Investment and Vacation Home Buyers Survey shows vacation home sales increased substantially in 2013.
According to NAR Chief Economist Lawrence Yun, favorable conditions are driving second-home sales:
“Growth in the equity markets has greatly benefited high net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” he said. “However, vacation-home sales are still about one-third below the peak activity seen in 2006.”
Take a look at the findings from the report:
Raw Numbers:
- Vacation-home sales rose 29.7% to 717,000 from 553,000 in 2012
- Sales accounted for 13 percent of all transactions last year, up from 11% in 2012
- The median price was $168,700, compared with $150,000 in 2012, reflecting a more significant number of more expensive recreational property sales in 2013
- 42% of vacation homes purchased in 2013 were distressed homes (in foreclosure or short sale)
Buyer Profile:
- The typical vacation-home buyer was 43 years old
- The median household income was $85,600
- Buyers plan to own their recreational property for a median of 6 years
- 33% said they were likely to purchase another vacation home within two years
- 82% of all second-home buyers said it was an excellent time to buy (compared with 67% of primary residence buyers)
Ready to find your dream home in Colorado?
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Reasons for Purchasing:
Lifestyle factors remain the primary motivation for vacation-home buyers:
- 87% want to use the property for vacations or as a family retreat
- 31% plan to use it as a primary residence in the future
- 28% wanted to diversify their investments or saw a good investment opportunity
- 23% plan to rent to others
Location:
- 41% of vacation homes purchased last year were in the South
- 28% in the West
- 18% in the Northeast
- 14% in the Midwest
The vacation homebuyer purchased a property that was a median distance of 180 miles from their primary residence (down from 435 in 2012)
- 46% were within 100 miles
- 34% were more than 500 miles
- 38% of vacation-home buyers paid cash in 2013
- The median down payment was 30%, up from 27% in 2012
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Financing:
Find out how they can help you buy your Vacation Home Today!
