Apr 2, 2015
According to a recent survey by the National Association of REALTORS, vacation home sales surpassed their 2006 peak to an estimated 1.13 million in 2014. NAR’s 2015 Investment and Vacation Home Buyers Survey shows vacation home sales were up 57.4 percent from 2013. Vacation home sales accounted for roughly 21 percent of all transactions last year, their highest market share since the survey was first conducted.
NAR’s chief economist Lawrence Yun says 2014 vacation home sales nearly doubled the combined total sales of the previous two years:
“Affluent households have greatly benefited from strong growth in the stock market in recent years, and the steady rise in home prices has likely given them reassurance that real estate remains an attractive long-term investment. Furthermore, last year’s impressive increase also reflects long-term growth in the numbers of baby boomers moving closer to retirement and buying second homes to cover into their primary home in a few years.”
While the number of sales increased dramatically, the median sales price of vacation homes dropped 11.1 percent. This is likely due to the increase in vacation home buyers purchasing condos and townhouses. Also, the increase in buyers purchasing homes in foreclosure or short sale and homes located in the South (where prices are statistically lower) contributed to the drop in sales price.
40% of vacation home buyers purchased a home in a beach destination last year, and 46% of vacation homes purchased were in the South. NAR’s findings expect metro areas in the South to see an increased number of baby boomers moving and boosting home sales over the next few years. For more information on NAR’s report, you can visit RISMedia.com or Realtor.org.
If you’d like to speak with a Realtor about purchasing a vacation home in Hilton Head or Bluffton, contact us today! We’re happy to help you every step of the way. Just call 843-785-8006 or fill out our contact form for immediate assistance.
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