Vacation home sales increased nearly 60 percent over 2013, according to a new survey from the National Association of Realtors Vacation home sales reached peak levels in 2014 while investment home sales decreased for the fourth consecutive years, according to the National Association of Realtors’ 2015 Investment and Vacation Home Buyers Survey.
Vacation home sales increased 57.4 percent last year to 1.13 million, the highest figure since the NAR started survey in 2003. Investment home sales decreased 7.4 percent to 1.02 million in the past year.
Rising home prices and decreasing distressed properties coming onto the market were the major contributors to diminishing investment home sales, according to Lawrence Yun, NAR chief economist. Yet, the median sales price of both vacation and investment home sales declined in 2014. The median vacation home price was $150,000, down 11.1 percent from 2013, and that of investment home fell 3.8 percent from 2013 to $125,000. Almost half of both vacation and investment homes purchased in 2014 were distressed properties.
Vacation home purchases
The median household income of typical vacation buyer increased to $94,380 in the 2014, up from $85,600 in 2013. Although more than half of vacation buyers (54 percent) bought a single-family home, the share of those buying a condo, a townhouse or row house increased from a year ago. One-third of vacation-home buyers plan to use the property for vacations or family retreats, and nearly 20 percent plan to convert the home into a primary residence in the future. Investment home purchases The median household income of investment buyers decreased to $87,680, compared to $111,400 in 2013. Investment buyers typically bought a detached single-family home. The major reason of investment purchases was rental income (37 percent), followed by low prices and potential price appreciation.
— Yuhee Woo
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