This year, more and more American families are making memories in a home away from home!
Statistics reflect that vacation homes created 21% of all home sales in 2014. So if you are considering a vacation home, or a second home, Palm State Mortgage wants you to know you are not alone. 1.13 million vacation homes were sold to families who wanted to own their own get-away.
Purchases of Vacation Homes: On the Rise
Experts say number marks the “highest sale level since 2003 and a 57% increase from 2013.
Profile of Vacation Homes and Their Buyers
At Palm State Mortgage we believe it is the stock market’s strong performance and the labor statistics that are inspiring consumer’s confidence.
NAR’s chief economist recently stated, “The top 10% of families are feeling much more financially confident.”
Other than confidence, let’s take a look at the financial anatomy of a second-home or vacation home buyer, according to a recent NAR survey of 2000 buyers:
1. You do not have to be a millionaire:
Most buyers in this market support a median household income of $94,380.
2. You might be a two income family:
58% of the recent second home buyers had two incomes.
3. You do not need to have all the cash:
48% of the new vacation home owners financed less than 70% of the purchase price, according to NAR.
4. You might be a beach or mountain lover.
According to the survey, “A beach location was the most popular among vacation buyers, and 54% of properties were single-family homes.” As you might expect, most of the vacation homes were purchased at beach or mountain location.
Check out some of the best areas for vacation homes at this convenient online resource.
5. You might find a bargain:
What do you think the price tag of a second home would be? In spite of all the variables across the country, the actual median price for a vacation home buyer was calculated at $150,000 last year.
(These people who bought vacation homes in 2014 got bargains because they paid 11% less than the vacation home buyers of 2013.)
6. You might be a Do-It-Your-selfer:
“Distressed properties made up 45% of vacation home sales last year,” the NAR’s report stated. Such vacation home buyers were undaunted by a little repair, and considered the bargain price worth improving the property.
7. You might be planning for your retirement:
In the survey, 19 per cent of the vacation home buyers created plans to eventually transform the vacation dwelling into their primary home when they officially retire.
Vacation Home Sales Defy Current Overall Statistics:
At Palm State Mortgage we are aware of the recent reports of February’s poor home sales. The facts show that “sales of used homes rose 1.2 percent last month to an annual rate of 4.88 million units. That failed to reverse January’s 4.9 percent drop.”
We blame the poor statistical performance on two important factors: In the first place, sellers are staying in their homes longer, causing a tight supply. You really do have to hunt to find a house with an appropriate price tag, whether it is a first home or a vacation home.
In the second place, “Realtors and economists say insufficient equity and uncertainty about the economy’s strength have been forcing potential sellers to stay longer in their homes.”
We also blame the weather for last month’s overall poor sales statistics. A winter full of storms certainly suppressed sales averages in the North and the East, but sales held their course in the Midwest and rose in the South and the West.
Vacation Home Owners Make Memories and Futures!
So, all we are saying is that statistics, medians, and averages do not tell the whole story.
We sense confidence and recovery in consumers.
We especially feel that this is a good time to take a cue from the baby boomers and build good summer memories in a vacation home while investing in it for your future retirement.
If you feel like a vacation home might be in your future, remember you can rely on Palm State Mortgage to find a perfect mortgage lender for your financial situation.
More and more Americans are embracing the vacation home, and then the home embraces them in their senior years.
