What’s Going on with Vacation Homes
Vacation Home – Sales Down, Prices Up
The National Association of Realtors recently released their 2016 Investment and Vacation Home Buyers Survey. Today, I want to concentrate on the vacation real estate market.
The survey found vacation-home sales in 2015 declined to an estimated 920,000, down 18.5% from their most recent peak level of 1.13 million in 2014. However, putting this in perspective, this is still the second highest number of vacation sales since 2006.
Lawrence Yun, NAR’s chief economist explained:
“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.”
However, while sales declined, the sales price of vacation homes rose in 2015: