Vacation homes finding buyers. According to NAR, sales of vacation homes in the U.S. boomed last year, even rising above their most recent peak in 2006, just before the housing crash. More remarkable is that in 2006, lending standards were very lax. Now, they are strict — yet sales have surpassed the 2006 high.
Zero Hedge commenting on sales of luxury homes wrote all across the country luxury homes are moving. “Repeat foreclosures may be on the rise and the underwater mortgage may now be a permanent fixture in the US housing market, but vacation home sales soared nearly 60% last year on top of 30% the year before that. Furthermore, one in five home sales in the US is now a vacation home.”
Moody’s told WSJ, there’s no reason why that figure shouldn’t rise going forward. With the global population of ultra-high net worth individuals growing at a 6% annual clip, Moody’s may be correct to forecast robust demand for vacation homes going forward. The US is the most popular country on the planet when it comes to secondary residence.
Lawrence Yun, NAR chief economist, says the numbers are nothing short of astonishing.
“Affluent households have greatly benefited from strong growth in the stock market in recent years, and the steady rise in home prices has likely given them reassurance that real estate remains an attractive long-term investment,” Yun said. “Furthermore, last year’s impressive increase also reflects 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.”
In fact, last year vacation home sales accounted for 21% of all transactions while sales of investment properties fell to 19%. Owner-occupied purchases – sales to consumers who plan to live in the homes – dropped from 67% of sales to just 60%.
Trusted Homebuyers is part of the community. We are here to help homeowners out of any kind of distressed situation and to help potential home buyers find their dream home, whether it’s a moderately priced house or one of the luxury vacation houses.
Trusted Homebuyers is part of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but we CAN help and we can do it quickly.