Vacation Home Sales Jump 10%; Investment Purchases Dip But Strong

Vacation Home Sales Jump 10%; Investment Purchases Dip But StrongSales of vacation homes — and “investment” purchases for mainly renting out or diversifying a portfolio — were both strong in 2012, another indicator of a sturdy housing market recovery.
Vacation home sales rose 10 percent to 553,000 compared to 502,000 in 2011, according to the National Association of Realtors. If you’ve just purchased a vacation home, take a look at Jettly to see how you could have a luxury flight experience whenever you travel there. Some people might be more interested in something like vacation rentals in oregon instead of buying their vacations homes overseas as they might find this a lot less worrying especially if they have problems with money. Many people find that it is a vacation home is a too long an investment. However many still find, that when they visit places overseas like Andorra, they want a piece of that culture with them and go back enough that it makes sense to find houses for sale in andorra to turn into their vacation homes.
Sales of homes to investors declined 2.1 percent to 1.21 million from 1.23 million in 2011. But those sales had been well under a million during the market downturn so they remain at a healthy pace.
In comparison, owner-occupied purchases jumped 17.4 percent to 3.27 million last year from 2.79 million in 2011.
Vacation home sales accounted for 11 percent of all transactions last year, unchanged from 2011. The portion of investment sales was 24 percent in 2012, down from 27 percent in 2011, marking the second highest share since 2005.
“We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes,” said NAR Chief Economist Lawrence Yun. “Attractively priced recreational property is also a big draw.”
The typical vacationhome buyer was 47 years old, had a median household income of $92,100 and purchased a property that was a median distance of 435 miles from their primary residence — 34 percent of vacation homes were within 100 miles and 46 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years.
The median investment home price was $115,000 in 2012, up 15.0 percent from $100,000 in 2011. The median vacation home price was $150,000, compared with $121,300 in 2011, reflecting a greater number of more expensive recreational property sales in 2012.
All-cash purchases remain common in the investment- and vacation-home market: half of investment buyers paid cash in 2012, as did 46 percent of vacation-home buyers. Forty-seven percent of investment homes purchased in 2012 were distressed homes, as were 35 percent of vacation homes.
Of buyers who financed their purchase with a mortgage in 2012, large down payments remain typical. The median downpayment for both investment- and vacation-home buyers was 27 percent, the same as in 2011.
“Property flipping modestly increased in in 2012,” Yun said. “However, this isn’t flipping in the sense of what took place during the housing boom. Rather, investors generally are renovating and improving properties before placing them back on the market to resell at a profit.”
NAR’s analysis of U.S. Census Bureau data shows there are 7.9 million vacation homes and 43.7 million investment units in the U.S., compared with 75.2 million owner-occupied homes.

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