Vacation Home Sales
Vacation home sales surged last year. According to the 2014 Investment and Vacation Home Buyers Survey by the NAR, vacation home sales rose 29.7% from the previous year.
For many baby boomers, owning that vacation home is making more and more sense as their home values have increased and their stock portfolios have almost recovered fully from the Great Recession of the late 1990s. Lawrence Yun, chief economist, said
“This reflects the 28 percent of recreational property buyers who said they purchased to diversify investments or saw a good investment opportunity.”
You can see in the article we published last week that demonstrates that this age bracket and higher income earners still believe that real estate is the best long term investment.
And another study by BHG revealed that 25% baby boomers are likely to purchase a second home, like a beach house or some other vacation home to use during retirement and to provide a family retreat for their children and grandchildren. Also many boomers are considering renting out these vacation homes for an additional income until they move into the homes themselves a few years down the road.
- Vacation home sales rose from 553,000 to 717,000 properties last year. This represents a 29.7% increase.
- The median price of these vacation homes increased 12.5% ($150,000 to $168,700)
- Vacation home purchases represented 13% of all homes purchases last year. (up from 11% the previous year)
- Forty-one percent of vacation homes purchased last year were in the South, 28 percent in the West, 18 percent in the Northeast and 14 percent in the Midwest.
- 25% of baby boomers are planning to buy a 2nd home or vacation in the near future.
- Vacation homes are still 1/3 below their peak prices in 2006, so there is still much more room for appreciation.
If your family is thinking to purchase your second home in the Myrtle Beach area, now may be the perfect time. Prices are still great and still lower than the cost of building right now. If you decide to rent the property until you’re ready to occupy it full time, the rental market in Myrtle Beach area is very strong. Many of our clients, are renting their homes now to vacationers, using their home during the weeks the vacation home is not rented, then planning on moving in it a few years from now. There are also great tax benefits to owning a vacation home. And you can still get a great mortgage interest rates that would enable you acquire this home while it still economically feasible.
At Dreamlife Realty, we specialize in helping families acquire their perfect Myrtle Beach vacation home to create memories, establish traditions, and share with the ones they love.
Contact us today so we can help you make this dream come true for your family too!