Vacation home sales were on fire in 2014 but according to the latest survey by the National Association of Realtors, they cooled off quite a bit in 2015. And with the volatile political climate we have now, buyers may put their vacation purchases...on hold.
Hi I'm Kathy Fettke and this is the Real Estate News for Investors.
The NAR survey shows that vacation home sales slipped a big 18.5% last year. An estimated 920,000 vacation homes were sold in 2015 compared to 1.13 million in 2014. But there are many factors playing into that huge slide.
While vacation home sales dropped, the purchase of investment homes soared. They were up 7 percent from the year before, creating a see-saw effect between the sale of investment homes and vacation sales.
One reason for the retreat of vacation home sales is due to price appreciation in the south, where many people go to buy vacation homes. Several Florida markets saw strong appreciation last year.
But across the nation, the median price of vacation homes jumped to $192,000 in 2015. That's up 28% from $150,000 in 2014. Wow. If you bought a vacation home in 2014, it might be a good time to sell!
NAR says the median sales price of an investment home also leapt to $143,500 last year, from $124,500 in 2014. That's not as much as the vacation home appreciation, but it's still a respectable 15.3%.
According to NAR chief economist Lawrence Yun, baby boomers planning for retirement are pushing up demand for vacation homes, but dwindling supplies are leading to higher prices and fewer sales. He says turbulence in the financial markets also have a cooling effect on vacation home sales.
But he says while vacation home sales shrank last year, investment purchases surged after four years of decline.
Get the full transcript at www.NewsForInvestors.com
The post #045 – Vacation Home Sales on the Decline but Investment Property on the Rise appeared first on Real Wealth Show | Real Estate Investing | Turnkey Rental Property | Cash Flow | Notes | Private Lending | Flipping | Wholesaling.