An overview from a recent study of National Association of Realtors
Due to the nationwide home price decrease, home sales increased in 13 states from the first three months in 2008. Most were in states where property values quickly dropped, such as California, Nevada, Arizona, Virginia, Florida and Idaho (the latter of which saw the largest gain in sales, at 51.7%).
Nationwide, the average second homeowner is 59 years old, married and makes $120,600 annually. According to the National Association of Realtors, many of these buyers acquire a vacation home about 220 miles from their own home, though about a third bought less than 100 miles away from home and a third bought 500 miles or more away. Eighty percent drive to their vacation home. While most buy for personal use and 18% say they want to retire where their second home is located, a third are buying for investment reasons. Of those whose primary motivation involves investing, only 13% buy the property to get rental income.
The association study found that 66% of second homeowners prefer water property (ocean, lake or river). But when asked what attractions they wanted to be near, 39% said outdoor activities, 38% said resorts and 31% said they wanted to be close to the mountains. So it’s no wonder that half of second homes are in resort/recreational areas, and only 16% are in rural areas.
Most second homeowners buy single family homes, and 28% buy condos or townhomes. Seventy-five percent of buyers find a second home that is valued lower than their primary, and 70% of investors believe their second home is a better place to put their money than stocks.
