Vacation Properties And Weekend Get Aways

Dated: 04/15/2014

Views: 5183

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 approximately 8 million vacation homes in the U.S. Their 2014 Investment and Vacation Home Buyers Survey shows vacation home sales improved substantially in 2013.
NAR Chief Economist Lawrence Yun said 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.”
Here are the key findings from the report:

Raw Numbers
 Vacation-Home sales rose 29.7 percent to 717,000 from 553,000 in 2012
 Sales accounted for 13% of all transactions last year, up from 11% in 2012
 The median price was $168,700, compared with $150,000 in 2012, reflecting a greater 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 a good time to buy (compared with 67% of primary residence buyers)

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

 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
Information courtesy of KCM Blog.
Blog author image

Marion Romano

I grew up in Bergen County, New Jersey across the Hudson River from New York City. My husband, Dennis, and I raised our two children there. As soon as the kids were finished with school, Dennis and I ....

Latest Blog Posts

Beach Haven Recent Home Sales 3rd Quarter 2018

Be sure to bookmark this page to see all the latest real estate transactions in Beach Haven.BONUS LINKSAll Properties Currently For SaleMarket Activity and Statistical DataTEXT "LBIPROPERTYREPORT"

Read More

Is It Worth It To Improve Your Home Or Move On

Homeowners are faced with numerous decisions throughout the years when it comes to their homes and how to manage them. A home is one of the biggest investments you'll ever make, so decision

Read More

The Summer Is Over

Summer season may be over,  but the fun doesn't end! Check out our great fall events and contact me for your spot for next.

Read More

Rising Rates And The Housing Market Oct 15 2018 126 1

Should rising interest rates concern you if you are thinking of buying of buying a house? That depends on a number of factors. Here are my observations on the matter. Regardless of what your

Read More