In early April of this year the National Association of Realtors published the 2014 Investment and Vacation Home Buyers Survey. Conducted in March 2014 the survey includes answers about 2,203 homes purchased during 2013 from a representative panel of 2,008 U.S. households.
According to the results of this survey, the NAR said vacation home sales, accounting for 13 percent of all transactions in 2013, jumped 29.7 percent to an estimated 717,000 from 553,000 in 2012. Owner-occupied home purchases rose 13.1 percent to 3.70 million in 2013 from 3.27 million in 2012. The sales estimates are based on responses from households only and exclude institutional investment activity.
With the market back in full swing, the prices of vacation homes were rising quickly along with a declining availability of foreclosure and short sale properties. The median price of a vacation home was $168,700 last year, up 12.5 percent from $150,000 in 2012 with 38 percent of vacation home buyers paying cash.
According to the survey, of those purchasing a vacation home with the assistance of a mortgage, typically put down 30 percent for a downpayment. When asked, buyers stated they plan to own their vacation property for a median of 6 years, which is down from 10 years when asked in 2012.
As of March 2014, 5 percent of those who had purchased a vacation home in 2013 had already resold their property, while another 9 percent plan to sell within a year. According to NAR Chief Economist Lawrence Yun, “This reflects the 28 percent of recreational property buyers who said they purchased to diversify investments or saw a good investment opportunity.”
With the majority of vacation homes being purchased in the South, Myrtle Beach is a prime coastal area worth looking into if you’re interested in making a vacation home purchase. When it comes to buying a house or condo to use as a vacation home, Sloan Realty has a broad assortment of places to show you. Give us a call at your convenience at 843-449-0835 and we’ll set up a time to get together.