Vacation Homes Entice Buyers
According to the National Association of Realtors (NAR), sales of vacation homes are at the second highest figure the market has seen since 2006. The NAR recently conducted its annual survey for residential sales, which detailed the impressive numbers for vacation home sales.
The 2016 Investment and Vacation Home Buyers Survey showed a bit of a slow down in the vacation home market, but still remains high. When considering transactions made in 2015, the organization revealed that sales declined 18.5 percent from 2014. In contrast, investment home sales saw a 7 percent increase. One primary takeaway? Vacation homes made up 16 percent of all real estate transactions, while investment sales remained at 19 percent, as in the prior year.
Other interesting details include:
- More people are paying for vacation homes in cash, with a rise from 30 percent to 38 percent. However, investors had a 2 percent drop in cash purchases, now at 39 percent.
- Foreclosure rates are down — a fact which elates those of us in Florida, where foreclosures were at one time the highest in the nation. Sales of distressed properties to vacation buyers dropped 9 percent this past year, of which only 29 percent were investor purchased.
- Vacationers prefer the South, according to the survey. Southern vacation home sales jumped 6 percent while the Midwest is the least attractive for vacation homes, at 13 percent.
For Floridians, the report mostly spells good news. The Sunshine State attracts seekers of both vacation homes and investment properties, so the continued strength of this market remains encouraging for our own market. If you’re interested in selling your own piece of South Florida real estate, or snagging one yourself, don’t hesitate to reach out to your real estate family at Stein Posner.