Sales of vacation homes rose strongly in 2013, according to the National Association of Realtors, with transactions jumping 29.7 per cent from 2012. Holiday homes accounted for 13 per cent of all sales in 2013, their highest share since 2006.
“Growth in the equity markets has greatly benefited high net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” says NAR Chief Economist Lawrence Yun. “However, vacation-home sales are still about one-third below the peak activity seen in 2006.”
Lifestyle factors remain the main motivation behind a holiday home purchase. The typical buyer was 43 years old, had a median household income of $85,600 and purchased a property that was a median distance of 180 miles from his or her primary residence.
87 per cent of buyers said they wanted to use the property for vacations or as a family retreat, while 31 per cent planned to use it as a primary residence in the future. (Indeed, 5 per cent of vacation-home buyers had already resold their property, while another 9 per cent planned to sell within a year.)
28 per cent, on the other hand, wanted to diversify their investments or saw a good investment opportunity, with …read more
Source: The Movechannel