A Report on 2009 Vacation and Investment Home Sales
The National Association of Realtors recently released a report that shows 2009 vacation home sales rose, but most purchases were personal use—not for rental income.
Vacation home sales rose 7.9% in 2009 to 553,000. In 2008, the sales figure was 513,000. Investment home sales fell nearly 16% in 2009 to 940,000. An NAR spokesman said that typically vacation home buyers are looking for a place to spend family time—although one in five buyers want to allow family members and friends to use their home.
Only 25% of vacation home buyers have plans to rent the property; while 20% of investment home buyers plan to use the home for vacations. The study shows that 26% of vacation home buyers and 8% of investment home buyers plan to use the residence as their primary home in the future.
Investment home sales in 2009 (at 940,000) represented 17% of the total market. This figure is down from 21% in 2008. It looks like rental property investors took a break in 2009, as inventories soared and rents declined.
Median prices for investment homes were $105,000 in 2009, a decline of 2.8%. Notable details from the report include an increase in investment sales in the West, with California showing a high percentage of cash sales in the lower-price range. Overall in 2009, 50% of investment buyers paid cash for their purchase.
If you’re wondering what a typical investment home buyer looks like, he or she is about 45 years old, has a 3 out of 4 chance of being married, earns about $87,000 per year, and bought an investment home close to their primary residence—the median distance was 24 miles. And 25% of investment home buyers purchased more than one home in 2009.