202291 Resource 78724 162077 78558 1209055915339 1215039306005 Controlled Vacation Homes and Investment properties continue to be bought at a Healthy Rate

Second homes account for 33% of all new and existing home sales

<p>Last week, the Mortgage Daily wrote an <a title="daily article" href="http://www.mortgagenewsdaily.com/4172008_vacation_property.asp"><strong><u>article</u></strong></a> on the <strong><a title="NAR website" href="http://www.realtor.org/"><u>National Association of Realtors</u></a></strong> study on the&nbsp;home market in 2007 and, where second home sales fell along with the overall market, second home sales accounted for 33% of all new and existing home sales. This percentage was down slightly for the 2006 figure of 36%.&nbsp; </p><p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Investment and Vacation Home Buyers Survey&nbsp;was extensive and showed a total decline in primary home sales, Vacation homes and Investment home markets but the primary home sales declined 10% (from 4.82 million in 2006 to 4.34 million in 2007) where vacation home sales dropped just 2% and investment home sales dropped just 1% over the same year.&nbsp;&nbsp;</p><p>&nbsp;&nbsp;&nbsp;&nbsp; Vacation home sales declined to 740,000, a 30.6% drop, but that was down from the 2006 record-setting year where 1.65 million&nbsp;sales occurred. &nbsp;Vacation homes made up 14% of the total market of homes purchased&nbsp;in 2006 and 12% in 2007.&nbsp; The typical vacation home buyer was 46 years old and had a median household income of $99,100.&nbsp; They purchased property that was a median of 287 miles from their primary residence. 65% of vacation home buyers bought existing homes while the remaining 35% bought new homes. Tight supplies led to a pent-up demand from buyers&nbsp;which made 2006 a record year.</p><p>&nbsp;&nbsp;&nbsp;&nbsp; Investment properties declined at the smaller rate of 18.1%; there were 1.65 million transactions on 2006 and 1.35 million in 2007.&nbsp; That dropped from the total market transactions in this category from 22% in 2006 to 21% in 2007.&nbsp; The typical investment home buyer was 42 and earned $92,900 in household income.&nbsp; They typically bought homes at a median of 27 miles from their primary residences.&nbsp; 71% of investment home buyers bought existing homes and the remaining 29% bought new homes.&nbsp; &nbsp;&nbsp;</p><p>&nbsp;&nbsp;&nbsp; Lawrence Yun, NAR's chief economist, said that the overall sales decline in 2007 was a combination of factors.&nbsp; During periods of uncertainty, times of tightening credit and mortgage industry disruption,&nbsp;there is a natural pull back on big-ticket items.&nbsp; He also said that strong demographics and lifestyle choices remain positive for the vacation home market as a peak of population is moving through the prime years for buying recreational property.&nbsp; </p> 9 application/xml false investment properties Summit County vacation homes On line article detailing the results of the NAR survey http://www.mortgagenewsdaily.com/4172008_vacation_property.asp The home site for the Association http://www.realtor.org/ Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727; SpamBlockerUtility 4.8.4) 127.0.0.1 127.0.0.1 kdeshaies 66.198.200.154 false true false false true 205866 false false true false false false true 78724 blog blogsite/SnowHome/web