2009 NAR Investment and Vacation Home Buyers Survey

The Investment and Vacation Home Market in 2008 in 2008, an estimated 70 percent of homes (including both new and previously owned homes) were purchased for use as the buyer’s primary residence. This share represents 3.766 million home sales, down from 4.336 million sales in 2007. While new and existing home sales fell 16 percent in 2008, sales of primary residences declined by a smaller 13.2 percent. Overall, the market for primary residences was somewhat more resilient; even in a declining real estate market, households continue to purchase a first home or relocate to another home for a variety of reasons.

Vacation home sales fell 30.8 percent to an estimated 512,000 units. The median price of a vacation home also fell sharply to $150,000, a decline of 23.1 percent from 2007. A significant majority of vacation home buyers, 89 percent, purchased a property for their personal use, while one-quarter also considered the rental potential. Twenty-six percent purchased a vacation home with the expectation of converting it to their primary residence in the future. Vacation home buyers expect to own their property for a median of 12 years. Slightly less than one-third of vacation home buyers paid cash for their property.

Residential investment property sales fell 17.2 to 1.117 million, less than half of the sales level in 2005. The median price fell 28 percent to $108,000 in 2008. Eighty-four percent of investment property buyers purchased an existing home, up from 71 percent in 2007. Investors may have been attracted to distressed properties rather than new homes as suggested by the 16 percent of properties that were purchased through the foreclosure process. More than half of investment property buyers indicated that they purchased the home to rent to others and 38 percent considered the property a good investment opportunity over and above any income generation potential. Forty-two percent of investment property buyers paid cash, up from 35 percent in 2007.

For additional information see my buyer’s / seller’s page on my website www.CarolinaJoe.com.

As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston, SC real estate needs or questions.

Sincerely,"Carolina Joe" Idleman
http://www.carolinajoe.com