Vacation-Home Sales Plummet 31%

Saturday, March 29, 2008 | 06:38 AM

More ugly Real Estate news:

Each year, the National Association of Realtors (NAR) puts out a survey of Investment and Vacation Home Buyers. As is their congenital compulsion, the trade group spun the data to somehow make it appear less negative: "Second-Home Sales Accounted For One-Third of Transactions in 2007".

As if Vacation Home "market share" is a significant statistic. 


The data point we are always interested in are the year over year, NSA, sales. In 2006, 1.07 million vacation homes were sold -- a record number. In 2007, second home sales had fallen 31% to 740,000, according to NAR data. The median price of a vacation home was $195,000 in 2007, down 2.5% from $200,000 in 2006.

2007 also saw speculators exiting the housing market: Homes bought purely for investment dropped 18% to 1.35 million last year, compared with 1.65 million in 2006. That is versus a 10% decline in primary-residence sales, (2007 = 4.34 million, down from 2006 = 4.82 million)

59% of vacation homes purchased in 2007 were detached single-family homes, 29% condos, 7% townhouses or rowhouses, and 5% other. In 2006, single family homes were 8%  higher (67%) and condos 8% lower (21%). This suggests that some vacation home buyers are shifting towards purchasing smaller, less expensive properties. Perhaps the aforementioned decline in speculative purchases was also a factor in this shift.

Lastly, the typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.


Second-Home Sales Accounted For One-Third of Transactions in 2007
NAR, March 28, 2008

Vacation-Home Sales Plummet
Amy Hoak
WSJ, March 28, 2008



Saturday, March 29, 2008 | 06:38 AM | Permalink | Comments (10) | TrackBack (1) add to | digg digg this! | technorati add to technorati | email email this post



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» Housing slump comes to the Hamptons from The Big Picture
Manhattan has been mostly immune form the Housing slump. This has been primarily due to lots of Wall Street money, and the cheap dollar, which has made real estate in the NY very attractive to Europeans. The Hamptons are apparently less immune. Its a s... [Read More]

Tracked on Apr 1, 2008 12:36:55 PM


Here on Cape Cod, a major vacation home locale, the real estate market is moribund. In our small town, the local assessor said she had not seen a building lot change title in over a year and home sales are way down, inventory way up (except for water-view). Example: new non-water-view 5-bedroom spec house on the market for > 2 years. Original asking: 1.4 million; last year reduced to 999k; now "pre-foreclosure price" - 750k.

Posted by: mind | Mar 29, 2008 6:52:38 AM

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