Fewer homebuyers are splurging on second homes, but more buyers are plunking down cash when they do purchase, according to a report released today by the National Association of Realtors.
Overall home sales are up nationwide and in Florida, but a large bulk of those buyers are first-time homebuyers and others cashing in on good deals.
When it comes to vacation homes, though, more people are putting off the purchase.
The findings aren't surprising, given the economic downturn, said Lawrence Yun, chief economist for the real estate group.
"We expected vacation-home sales to fall given the impact of a declining economy on discretionary purchases," he said.
What is somewhat surprising, however, is that more buyers are paying with cash.
Four out of 10 investment buyers and more than three in 10 vacation-home buyers paid cash for their properties. Many of those buyers said they bought in order to diversify their portfolios.
Thirty percent of all homes sold in 2008 were second homes, down from 33 percent in 2007, according to the report. In 2005, the peak year for housing speculators, 40 percent of sales were for second homes.
Despite the drops, the real estate group expects more people to buy second homes in the years to come, based on the age that many buyers start considering a second home. In the United States, 39.2 million people are between 50 and 59, 44.8 million are between 40 and 49, and 40.7 million are between 30 and 39.
"While economic factors can affect sales from one year to the next, the fundamental demand from these large population groups will remain," Yun said.
"Given that most people become interested in buying a second home in their 40s, the bulge of population approaching middle age should drive the second-home market over the next decade."
Email
Facebook
Google
Twitter
Favorites
More
Advertisement
Advertisement