Reach, Engage & Sell Affluent Buyers
Vacation & Second Home Markets Heating Up
Reported by Judith She’
In addition to retiree buyers, there is an increasing opportunity for builders/developers that cater to the vacation & second home market segment. Ideal-Living would like to thank one of our strategic partners, Judith She’ (Managing Editor for Bowden’s Market Barometer) for contributing the findings below.
The second home market segment soared above its previous (2006) peak level to an estimated 1.13 million sales last year, the highest since the National Association of Realtors (NAR) began surveying in 2003, and nearly doubling the combined total of the previous two years.
In 2014, the 1.13 million sales represented a remarkable increase of 57.6% over the impressive 2013 activity and accounted for 21% of all transactions for the highest market share ever, and an eight point jump from 13% in 2013.
As financing has loosened, the share of vacation homebuyers paying cash fell to 30% from 38% in 2013. Of buyers financing their purchase with a mortgage, nearly half (48%) of vacation homebuyers financed less than 70% of the purchase price.
A majority (54%) of vacation homebuyers bought a single-family home, but the share of those purchasing a multi-family property grew from 34% in 2013 to 45% last year.
Vacation homebuyers purchased a property that was further away from their primary residence — a median distance of 200 miles compared to 180 miles in 2013.
Forty (40%) percent of vacation home buyers purchased in a beach area, 19%purchased in the country and
17% purchased in the mountains. The South saw the largest share of vacation homebuyers (46%), followed by the West (25%), the Northeast (15%) & the Midwest (14%).
For the full report please visit: bowdensmarketbarometer.com
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