By Mark J. Donovan
According to a recent 2010 National Association of Realtors (NAR) survey, vacation home sales were up 7.9% in 2009 to 10% of all home sales. Investment home sales, on the other hand, were down 15.9% in 2009 to 17% of all home sales. The 2009 medium sale price for vacation homes and investment homes was $169,000 and $105,000, respectively.
A vacation home is defined as a property where the buyers intend to use it more than rent it, whereas an investment property, is expected to be used less by the buyer and is typically rented out.
Could this be another early sign of a housing recovery. Possibly. According to the NAR report the average age of a second home buyer is in his or her 40s. Though the baby boomer generation is getting long in the tooth, there are 44.4 million people in the 40-49 age bracket, whereas there are only 40.1 million boomers in the 50-59 age bracket. With historically low housing prices and a larger buying pool than selling pool, the time may be ripe for purchasing a second home.
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