Vacation home sales went down a bit in 2015, but were still at their second highest in a decade, according The 2016 Investment and Vacation Home Buyers Survey by the National Association of Realtors. Investment purchases went up in 2015 for the first time in five years, also according to the NAR. The median sales price of both vacation homes and investment real estate went up. The median vacation home price was $192,000, up 28.0 percent from $150,000 in 2014, while the median investment-home sales price was up 15.3 from a year ago. Overall, 58 percent of vacation homes bought were single-family homes.
What’s happening with Vacation Home Sales?
“Baby boomers at or near retirement continue to propel the demand for second homes, although headwinds softened the overall volume of vacation sales last year,” says Lawrence Yun, NAR Chief Economist. “The expanding pool of buyers amidst a dwindling number of bargain-priced properties led to tighter supply and fewer sales, and caused the price of vacation homes to rise. Furthermore, the turbulence that hit the financial markets the second half of the year likely seized some would-be buyers’ available cash.”
According to Florida Realtors and the NAR, “Over one-third of vacation buyers plan to use their property for vacations or as a family retreat (37 percent), 16 percent bought for future retirement plans and only 7 percent purchased to generate income through renting the property – a decrease from 11 percent in 2014.”
One of the most popular vacation markets, not surprisingly, was here in Florida. Almost half (47 percent) of all vacation home sales happened in the South in 2015, an increase from 2014. 44 percent of vacation home buyers bought real estate on or near the beach.
If you are looking for a vacation home, clearly Florida is a hot spot. Here at RE/MAX Paradise, we can definitely see why. Check out both our homes for sale and for rent, and pack your bags for Florida!