The National Association of Realtors announced its results for the Investment and Vacation Home Buyer Survey. Overwhelmingly it found that vacation home buyers were in the South, were of the median age 50, had an income under $100,000, and paid cash for their properties. Further, it stated that investment buyers held similar practices, paying in cash, purchasing multiple properties, many of which were distressed properties, and when financing was used the down payment was steep approximately 27% of the purchase price. Chief Economist for NAR has this to say about the recent findings, “During the past year investors have been swooping into the market to take advantage of bargain home prices. Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41% of investment buyers purchased more than one property. Clearly, we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash. Of buyers who financed their purchase with a mortgage, large down payments were typical. The median down payment for both investment and vacation home buyers in 2011 was 27%.” We are pleased to offer some of the most interesting findings below, we hope you enjoy this update!
·Total sales of vacation homes went up 10% from 2010
·Investment Property Purchases were up 64.5%
·Vacation Home Sales went up 7%
·49% of investment buyers paid cash in 2011
·42% of vacation home buyers paid cash
·The median vacation home price was down 19.1% from 2010
·35% of vacation homes were within 100 miles of the primary residence
·37% were more than 500 miles from the primary residence
·42% of vacation homes were purchased in the South
·30% of vacation homes were purchased in the West
·15% of vacation homes were purchased in the Northeast
·12% of vacation homes were purchased in the Midwest
