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.
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.