The second home market surged in 2011, according to data from the 2012 NAR Investment and Vacation Home Buyers Survey. The combined market share of investment and vacation homes rose to the highest level since 2005.
Investment home sales jumped 64.5 percent over 2010. Vacation home sales climbed seven percent, year-over-year, and accounted for 11 percent of all transactions last year.
The survey provided insights into the effects of today’s tight credit environment, as well. Forty-nine percent of investment buyers paid allcash, as did 42 percent of vacation home purchasers. Typical second-home buyers were around 50 years old with median incomes ofapproximately $87,000.
More insights… The South leads the country in investment and vacation buying activity, with 44 and 42 percent of all transactions, respectively. Eighty percent of second-home buyers said that current market conditions encouraged their purchase. Talk to a REALTOR® to find out about the second home market in your community. What are the trends in investment and vacation home buying in your area?