Second-home Sales Accounted For One-third Of Transactions In 2007; Vacation Home Purchases Examined
Posted by Damon L. Chavez on Tuesday, April 8th, 2008 at 5:30pm.
The National Association of Realtors has reported results from a 2007 Investment and Vacation Home Buyers Survey, conducted in March 2008. They found that sales of second homes, including vacation and investment home sales, still accounted for 33 percent of all existing and new home sales for 2007, down from 36 percent of transaction sin 2006. The combined total of such home sales did decline with the overall market in 2007. In terms of type of Vacation home purchased, 59 percent were detached single-family homes, 29 percent condos, 7 percent townhouses or row houses, and 5 percent other. In 2006, single family homes accounted for 67 percent of vacation-home sales, while condos were 21 percent. The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence. In listing the reasons for purchasing a vacation home, 84 percent of buyers wanted to use the home for vacation or as a family retreat; 30 percent as a primary residence in the future; 26 percent to diversify investments; 25 percent to rent to others; 16 percent for tax benefits; 14 percent for use by a family member, friend or relative; and 6 percent because they had extra money to spend. Sixty-five percent of vacation home buyers purchased existing homes, while the remainder purchased new homes. Last year, 24 percent of vacation homes were purchased in the West. Vacation-home buyers plan to keep their property for a median of 10 years; 38 percent plan to keep their vacation home for 11 years or more. NAR’s 2007 Investment and Vacation Home Buyers Survey, conducted in March 2008, includes answers from 1,965 usable responses. The survey controlled for age and income, based on information from the larger 2007 National Association of Realtors® Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents. The Colorado House Finders’ Real Estate Consulting team is experienced, professional real estate agents with certifications in Real Estate, Lending and Appraising, who specialize in Denver Colorado real estate. For access to Denver MLS listings , contact Colorado House Finders or www.ColoradoHouseFinders.com.