According to the 2012 Investment and Vacation Home Buyers Survey conducted by the National Association of Realtors (NAR), sales of vacation homes and investment homes have jumped in 2011 – the highest level since 2005.
The 2012 Investment and Vacation Home Buyers Survey, which covers the existing and new home transactions in 2011, shows that vacation-home sales increased by 7%, from 469,000 in 2010 to 502,000 in 2011; while investment-home sales rose extraordinary by 64.5%, from 749,000 in 2010 to 1.23 million in 2011.
This data goes to show that investors with cash took advantage in the U.S. housing market condition last year.
NAR Chief Economist Lawrence Yun, in a statement said, “During the past year investors have been swooping into the market to take advantage of bargain home prices.”
“Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property,” Yun continued.
“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Yun added.
Forty-two percent of the vacation-home buyers in 2011 bought the properties in cash; while 49% of investment buyers in 2011 paid cash.
Thirty-nine percent of the vacation homes purchased in 2011 were distressed homes, including foreclosures and short sales usually sold at discounted prices; while 50% of investment home purchases in 2011 were distressed homes.
The median vacation-home price in 2011 was $121,300, a decrease by 19.1% from $150,000 in 2010; while the median investment-home price in 2011 was $100,000, an increase by 6.4% from $94,000 in 2010.
The typical vacation-home buyer was 50 years old; while the investment-home buyers in 2011 had a median age of 50. There are currently 42.1 million people in the U.S. within the 50 to 59 age group.
Whether you are a first-time home buyer, first-time home seller, empty nester, thinking about selling a home or buying a home, do contact the Guldi Real Estate Group. In Southern Maryland, the Guldi Group is the number one real estate team.