As the market continues to shift, one industry trend seems to be making continuous waves: vacation home. With mortgage rates still low and prices relatively low in most parts of the country, affluent buyers are making their move and purchasing second homes in exotic locations to be used as vacation getaways.
According to NAR (National Association of REALTORS), sales of investment and vacation homes jumped in 2011, with the combined market share the largest since 2005. People are getting away again, and as the economy stabilizes, many are looking for a standing vacation spot. What does this market look like?
In 2011, 42 percent of vacation home buyers paid in cash, and 39 percent purchased distressed properties. Purchased vacation homes were located a median of 35 miles from the buyer's primary residence. 35 percent of vacation homes were within 100 miles, and 37 percent were more than 500 miles. Typical buyers plan to own their recreational property for a median of 10 years.
Also, 91 percent of vacation home buyers planned to rent their new home out within the next 12 months for at least part of the season.
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