Fewer People Buying Second Homes

Despite overall home sales maintaining their strongest pace in a decade, 2016 vacation home sales reported in at their lowest level since 2013, dropping 21.6 percent from 2015. The National Association of REALTORS® Chief Economist Lawrence Yun attributes this decline to challenges with affordability and supply. The two of the most popular destinations for vacation homes – the South and the West – have seen soaring home prices in several markets in recent years, meaning purchasing a second home has become difficult and unaffordable for many buyers. However, buyers purchasing a home for investment purposes reached their highest level since 2012, with investors taking advantage of historically low mortgage rates and demand for rental options.

Story Springboard:

Check out NAR’s 2017 Investment and Vacation Home Buyers Survey for more information on last year’s second home sales. Chat with someone who recently purchased a second home about why he or she thought now was a good time to buy a vacation or investment home. Speak with a REALTOR® in your area about the area’s second home market in recent years.

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