Vacation Sales Surge??? Is that right???

By
Real Estate Agent with CB Select Real Estate at Lake Tahoe - 775.691.3855 - DRE: NV28254 CA01139667

Real Estate Outlook: Vacation Sales Surge

According to the National Association of Realtors’ 2012 Investment and Vacation Home Buyers Survey, there was a surge in sales of both investment and vacation homes in 2011.

NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

Yun said the shift in investment buyer patterns in 2011 shows the market, for the large part, is able to absorb foreclosures hitting the market.

Increased investor purchases are partly responsible for the large percentage of all-cash purchases seen in the last year. They make up around one-third of all purchases. Forty-nine percent of investors paid cash in 2011.

“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Yun said. Of the buyers who didn’t use all cash they paid a hefty average 27 percent downpayment.

As opposed to investment purchases, which were made out of the desire for rental income, vacation homes were driven by lifestyle factors and were purchased by households making an average of $88,000 a year.

What portion of the market are these vacation sales? They accounted for 11 percent of all sales in the market.

Overall mortgage applications increased 4.8 percent, according to the Mortgage Bankers Association (MBA). The refinance share of the market decreased again to 71.2 percent. Just a few months back it was over 80 percent.

Source: realtytimes.com

I would agree..  Sales have increased.  Our market is up 6% YOY.  That is an improvement.  But it is still a buyers market, an opportunity to get a vacation home at more than 40% lower than just a few years ago.  So things are improving.  But we are still waiting to see what summer brings. 

 

 

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 Ken Cash,  CRS

Coldwell Banker-Nevada & California

 

KenCash@TahoeLiving.com

775.691.3855   direct

775.833.6448

www.TahoeLiving.com

Associate Broker

 

Coldwell Banker Select Real Estate of Lake Tahoe

 

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Rainmaker
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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank goodness that we hae these and any other buyers in this market. 

May 08, 2012 09:19 AM #1
Rainmaker
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Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Thanks for this information, I believe with all the baby boomers coming into retirement age in the next few years, there will be a big demand for vacation homes

May 08, 2012 10:11 AM #2
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Rainer
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Ken Cash

Lake Tahoe Lake Front Homes, Luxury Homes, Condomi
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