Look of the Week: The Boom in Vacation Homes

Here's the latest data on vacation homes - which accounted for 1/5 of all sales last year!

According to a new National Association of Realtors report, the market for vacation homes is booming...  
  • Consumers bought 1.13 million vacation homes in 2014, the highest amount since NAR started tracking sales in 2003.
  • Vacation home sales were up 57% over the previous year.  
  • Vacation homes accounted for 21% of all real estate transactions in 2014, compared to just 13% of all transactions in 2013.

Why are vacation home sales booming now? 

The value of most people's primary home has gone up significantly in the past few years, giving them more confidence to extend their real estate investment to a second home.

Increased net worth from the strong stock market, along with low interest rates, have made buying a second home more feasible.

Many baby boomers are shopping for a place to vacation at now, and retire to later.

What are people buying? 

54% bought a single-family home

27% bought a condo

41% bought in a beach area

19% bought in the country

17% bought in the mountains

19% plan to convert their vacation home into their primary residence in the future 

Your vacation home can be a revenue source. 

Some second home owners opt to rent their home out when they're not using it, making a vacation getaway an additional source of income.

Websites like Airbnb and VRBO make it easy to rent your home on your own, or you can turn everything over to a property manager to do the work for you.  

Many resorts offer their own service that manages all the details of renting your vacation home.  

 May 28, 2015