Sunny Second Home-Market
2005 Profile of Second Home Buyers
2005 Profile of Second Home Buyers
(May 12,2005) -- The near term outlook for the second-home market is strong, but there are reasons to be concerned down the road, said David Lereah, cheif economist for the NATIONAL ASSOCIATION OF REALTORS, at NAR's Resort Real Estate Committee meeting on Wednesday in Washington, D.C.
The meeting was part of the 2005 REALTORS Midyaer Legislative Meetings & Trade Expo, being held May 9-14.
"For the next five to 10 years, this is a very healty marketplace," Lereah said. "By and large, the second-home market is healthyier than the primary-home market."
Second homes accounted for 36 percent od all residential transactions in 2004, with 23 percent purchased for investment purposes and 13 percent for vacation residences, according to NAR's 2005 Profile of Second-Home Buyers.
Fueling the second-home market are baby boomers taking advantage of equity built up in their primary rsidences; strong demand from foreign buyers; and easier financing availbility. However, Lereah said loose lending pratices and speculative buying could dampen demand for these properties in the future.
Lereah presented these additional highlights from NAR's second-home survey:
--Chuch Paustain, REALTOR Magazine Online
The meeting was part of the 2005 REALTORS Midyaer Legislative Meetings & Trade Expo, being held May 9-14.
"For the next five to 10 years, this is a very healty marketplace," Lereah said. "By and large, the second-home market is healthyier than the primary-home market."
Second homes accounted for 36 percent od all residential transactions in 2004, with 23 percent purchased for investment purposes and 13 percent for vacation residences, according to NAR's 2005 Profile of Second-Home Buyers.
Fueling the second-home market are baby boomers taking advantage of equity built up in their primary rsidences; strong demand from foreign buyers; and easier financing availbility. However, Lereah said loose lending pratices and speculative buying could dampen demand for these properties in the future.
Lereah presented these additional highlights from NAR's second-home survey:
- The typical vacation-home buyer is 55 years old with a total household income of $71,000. Investment-property homebuyers have a median age of 47 years with a typical household income of $85,700.
- The median distance between a vacation-home buyer's primary residence and second home is 49 miles, compared with 18 miles for investment-property purchasers.
- The majority od second-home-owning households--71 percent od vacation-home buyers and 59 percent of investment-property purchasers--have no children under 18 living at home.
- 83 percent of vacation-home buyers and 84 percent of investment-property purchasers used a real estate pratitioner in their search and purchase.
--Chuch Paustain, REALTOR Magazine Online
