Vacation Home Market Booms



Investors who can afford to make a foray into the vacation market are labeling conditions as “the perfect storm” at the moment – low mortgage rates, falling values and increased affordability – all of this is providing a growing number of opportunities for those in the market for a second home.

Vacation home

Who wouldn't want a second home like this if the price is right? © Jack Rom - Fotolia.com

Last week, the National Association of Realtors said that a survey, first reported in MSNBC, showed sales of vacation homes had jumped by almost 7% during 2011. Why so many second home buyers? Well, at least 33% of those who responded when questioned in the NAR survey pointed to the low cost of real estate right now. Interestingly, of those who purchased a second home, a massive 91% say they plan to rent out their new property, with 71% saying that the potential income from rent was one of the biggest motivations for buying a vacation home.

Over the last few years, it’s possible that many of those interested in buying a second home were simply sitting on the fence, waiting for the right time to pounce and get the best possible deal. And it seems as if many have since decided that there’s no time quite like the present, according to industry experts.

Of those second home buyers, a growing number are buying in cash as well. According to the NAR survey, 42% of vacation homes purchased last year were fully paid for in cash.

In addition, buyers of vacation homes are not limiting themselves to the traditional beach resorts and ski resorts of old, according to NAR spokesman Walter Molony:

“Many are in lesser-well-known areas, places known mainly on a regional basis. Places such as Gatlinburg, Tenn.; Brown County, Ind.; and Williamsburg, Ky. are seeing growing attention from buyers in vacation-home purchases.”

Molony added that “name destination resorts” are only a small part of the picture in the vacation homes market, before speculating that many second-home owners would rather buy somewhere within easy reach of their primary home.

About Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Comments

  1. It is summer again and many of us think of beaches, outings, picnics, and other summer activities that make us relax and enjoy. This is only once every year so we really have to make the most out of it. Many stressed individuals prefer to go out of town just to relax that is why it is very important for them to choose for the best vacation houses to stay in. Vacation houses are not similar to residential houses, these types of houses should have a very relaxing ambiance from its color, walls, designs, furniture and garden. All of these factors contribute to the perfect relaxation that everybody is wishing for to have in their vacation. Thank you for sharing this useful content, I really like it, keep it up!

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