BluefoxToday blog

Vacation home sales up

There has to be good news somewhere in the real estate galaxy if you look hard enough. Finally we found some. Vacation home sales moved up 4.7% in 2006, as reported by NAR. The sector now consists of 14% of all home sales, improving from 12% in 2005.

The nation's demographics are driving the market. The buyer usually is in his mid 40s or over, with a median household income a little better than $100,000. This is generally considered the prime buying age. Besides using the property as a vacation home, there were other practical reasons to the acquisition. Some 28% said they would use it as a primary residence after retirement, others saw tax benefits in it and 18% had plans to rent the property out.

Some other numbers stand out from the survey and are worth commenting on. Almost a third of the homes were in the country and 24% were in resorts. I wonder what percentage goes to Las Vegas? We do have quite a few of them here. And this comes as a surprise to me. A full 67% were single-family houses. I thought we were already living in the high-rise condo age and the segment would be in the lead. Well, with 21% it's still way behind. 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 3 commentsEsko Kiuru • May 01 2007 05:33PM
Vacation home sales up
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There has to be good news somewhere in the real estate galaxy if you look hard enough. Finally we found some. Vacation home sales moved up 4. 7% in 2006, as reported by NAR. The sector now consists of 14% of all home sales, improving from 12% in 2005… more
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