Last Thursday, the NAR (National Association of Realtors) released their “2015 Investment and Vacation Home Buyers Survey” which reported that vacation home sales in 2014 reached their highest point in the 12 years since the survey commenced.
The NAR reported that vacation home sales rose 57% in 2014 from the previous year, going from 717,000 to 1.13 million. This figure is almost double that of the two previous years. The NAR notes that this is due in part to the decidedly improved financial condition of affluent Americans along with an increased focus by baby boomers on their retirement housing. Lawrence Yun, the NAR’s chief economist, noted the “…long-term growth in the numbers of baby boomers moving closer to retirement and buying second homes to convert into their primary home in a few years."
Here are some of the interesting facts found in the NAR survey:
~Vacation home sales made up more than 1/5 of total sales last year, the highest figure ever.
~54% of vacation home sales were of detached, single family dwellings. Beach locations were the most popular, encompassing 40% of all vacation home sales with country locales favored by 19% and mountains 17%. In 2014, the median square footage of a vacation home sold was 1,500 and the median distance from the primary residence was 200 miles.
~The median price of a vacation home in 2014 was $150,000, an 11% decline from 2013. 30% of vacation home sales were all cash, down from 38% the prior year. 45% of total sales involved distressed properties (short sales or foreclosures).
Last November, the NAR published a “Vacation Home Primer” by Barbara Ballinger which offered nine important factors to consider for real estate professionals working with prospective purchasers of vacation homes. A link to this article is found here: Vacation Home Primer
