Vacation Home Sales Update

  

 

According to a 2010 survey by the National Association of  Realtors, sales of vacation homes were up 7.9 percent nation-wide, to 553,000 from very low levels in 2008.  Across four regions, the share of vacation homes purchased increased in the West, Midwest and South and decreased in the Northeast.  The study showed that buyers were more likely to purchase a vacation home in a small rural area, small town or a resort.   

 

The typical vacation home buyer in 2009 was 46 years old, had a median household income of  $87,500 and purchased property that was a median distance of 350 miles from their primary residence; 34 percent were within 100 miles and 40 percent were more than 500 miles. 

 

Demographically, the long-term demand for second homes looks favorable because large numbers of the population are in the prime years for buying a second home. Historically people become interested in buying a second home in their 30s and 40s and this large group will dominate the second-home market in the coming decade with a strong underlying demand. 

 

Although mortgage lending for second homes was extraordinarily tight in 2009, it is expected to ease in 2010. But cash factored strongly in the second-home market: 3 out of 10 vacation-home buyers in 2009 paid cash for their properties.

 

NAR’s analysis of U.S. Census Bureau data shows that there are currently 7.9 million vacation homes.