Vacation homes have made a surprising recovery and with spring weather upon us, the market is heating up. The housing crash certainly hit the vacation home market hard but 2013 saw a strong recovery and 2014 looks to be a stand out year. Obviously, vacation homes are dominated by the upper income households and they’ve seen substantial growth in investment funds from the stock market rally. Now, many are looking to diversify their investment holdings into real estate in the form of vacation homes or vacation rentals.
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Vacation Homes By the Numbers
Sales of vacation homes were up 30 percent in 2013 compared to 2012. That pushed prices up 12.5 percent to the highest mark since 2006. With the vacation home season just getting underway, the 2014 numbers are expected to outpace 2013.
Some are buying vacation homes as investments. Five percent who bought last year have already sold the house for a profit. Another nine percent plan to sell before this year is over. Another 28 percent say they bought their vacation home as an investment to diversify their holdings.