Thursday, April 4, 2013

Vacation home sales increase

A vacation property on the North Fork of the Coeur d'Alene River with 200-feet of riverfront, as listed in the Coeur d'Alene, Idaho MLS (13-3031)  - Ralph Bartholdt

Vacation homes are the new sought-after real estate property.
Sales of vacation homes were up 10.1% last year, accounting for 11% of all home sales, according to the National Association of Realtors. The surge in demand helped lift median vacation home prices by 24% or about $150,000 nationwide
"Investors have been very active in the market over the past two years, attracted mostly by foreclosures that could be quickly turned into profitable rentals," said Lawrence Yun, chief economist for NAR. As a result, the supply of available second homes has grown limited.
It's not just investors lifting the vacation home market, though. The number of people buying vacation homes for their own use has also climbed, according to CNN.
Part of the surge is a gradual market recovery, preceded by a semi-recession in which recreational home owners, strapped for cash, want out.
Vacation home buyers are about 47 years old, compared to 40 years old for regular buyers -- and they tend to be more affluent, earning around $92,100, or about 20% more than conventional, according to CNN.
Prices of vacation homes are still relative bargains, and well below bubble-era highs.
Many second-home buyers are bringing a lot of cash to the table. Almost half of all second-home purchases are all-cash deals. Even when buyers finance the purchase with a mortgage, they tend to make large down payments, according to NAR.

From a CNN report.

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