(August 15, 2010) – The 2010 Second Home Trend Report indicates 45% of existing second home owners believe that now is a good time to buy an additional second home.
E360’s Second Home Trend Report, surveys existing second home buyers on the preferences of timing, attributes, location, and pricing of an additional second home purchase.
Of those 45% indicating that they are in the market for a second home, Mexico is the top international destination with more than half of the total interest. E360’s Global Research Analyst, Chad Martin said “although only half of our respondents believe now is a good time to buy, it is impressive that there is a strong second home contingent looking at a market like Mexico.”
More impressively, of the remaining 54% who indicated that now would not be a good time to buy 79% indicated that they would be likely or very likely to purchase in the next 2 years. Martin says “this is a strong indication that demand will continue to grow over the next two years and will strengthen the second home market”.
As consistent with current market trends, lifestyle and vacation attributes are the leading motivator at 46% for second home buyers with investment purposes coming in next at around 41%. Second home purchases for the purpose of retirement ranked 3rd at just over 11%.
The desire for a second home geared for vacation purposes is not a surprising finding. Martin said “this is a consistent trend with the preferred attributes of the buyer being water views and proximity to water or mountain activities.” Lake and ocean views combined for an overwhelming majority of the preferred attributes surveyed with mountain views coming second.
Martin adds “While spa and medical facilities have exhibited recent high growth rate forecasts in recent studies respondents did not translate that growth into the high motivation for a second home purchases. Green based second homes did not show the high appeal translating into a purchase motivation. Golf has not clearly shown itself as primary appealing attribute as it translates to real estate buyers when compared to other second home attributes.”
Although most respondents indicated they would be looking in International markets for a second home, nearly 49% of purchasers will be looking domestically. “although most of these buyers plan to wait 1-2 years, this is great news for the US Second Home market. Over the next few years we anticipate that the second home market in the US that are focused 100-1000 miles from highly populated areas will see an increase in demand.”
According to the study, 40% are looking at areas 500-1000 miles away and nearly 30% are looking from 100-500 miles away from their homes. The numbers over 1000 miles dropped significantly to 11%. This supports the trend that of those interested in a domestic or Mexico second home market, nearly 39% of buyers are looking in rural areas throughout the US.
Of the same second home buyers looking at a US purchase, 49% are looking for a single family home and 60% preferred a smaller 2-bed, 2-bath floor plan.
These respondents are interested in the $200,000 to $400,000 price range and 60% are not interested in receiving financing for the purchase.
E360’s 2010 Second Home Trend Report, conducted in June/July 2010, includes answers from 612 usable responses. For more information on E360, visit www.element-360.com