US Holiday Home Sales Increase By 10%
As the housing market in the USA continues to recover, new figures from different sources show varying pictures of what is really going on.
New data from the National Association of Realtors reveals that sales of holiday homes increased by slightly more than 10% in 2012, but at the same time general investment sales decreased.
The association represents estate agents across the country and is therefore accepted as a good barometer of what is really happening on ground level.
NAR chief economist Lawrence Yun explained: “We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes. Attractively priced recreational property is also a big draw.”
Holiday home sales accounted for 11% of the total of all property transactions in 2012, keeping a stable level from the previous year.
Although investment sales made up a larger share of the market activity, at 24% the number of transactions had fallen three points from the previous year’s tally of 27% market share.
Prices also differed, with the average cost of an investment residential property being $115,000 in 2012, a rise of 15% from $100,000 in 2011, whereas the average cost of a holiday home was higher at $150,000, compared with $121,300 in 2011.
The NAR report revealed that 78% of second home buyers said they thought now was a good time to buy, compared with 68% of primary residence buyers. Yun said that the figures suggested “second home buyers tend to be a step ahead of general buyers in sensing a market recovery.”
Reasons cited for purchasing a holiday home included ‘use for holidays or as a family retreat’ by 80% of buyers while 27% said they intended to use it as their primary residence at some time in the future.
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