Almost One Third of Sales in 2007 Were Second Homes
Even though vacation home sales dropped by 30 percent last year compared to the previous year, almost one third of total sales in the U.S. during 2007 were for second homes. This is based on information from a survey recently released by the National Association of Realtors. “Some buyers have adopted a wait-and-see attitude”, according to NAR economist Lawrence Yun, refering to the mortgage and credit crisis. However, many buyers of second homes (80%) are bullish about the housing market, and still considered now a good time to invest in real estate. This compares to 60% of primary residence purchasers. Pat Kirby an expert on second homes, attributes the bullish viewpoint of second home buyers to an affluent group of people–Baby Boomers–that are moving through their peak years for seeking out vacation property and/or second homes in resort areas around the country. According to the NAR Survey, the typical vacation home buyer in 2007 was 46 years old, with a median household income of $99,100. The median price of vacation homes purchased in 2007 was $195,000.