Despite tight credit, second-home sales keep pace with the rest of the market

New York /
Mar.March 30, 2011 02:50 PM

One in 10 residential sales in the U.S. last year went to vacationers who intended to use the property as a second home, according to a new report from the National Association of Realtors. Despite the tight credit market for second homes, that market share was unchanged from its level in 2009. And despite depressed home price levels, the market share for investment sales also held steady, accounting for 17 percent of all residential sales nationwide, just as it did in 2009. Both vacation home buyers and investors purchased a disproportionate number of distressed properties, compared to buyers of primary residences, the NAR data shows. While just 5 percent of primary home purchases were sold as foreclosures or in trustee sales, that share was 17 percent for investment purchases and 11 percent for vacation home purchases. “The fall in home prices has opened opportunities for more families to enter the second-home market,” said Lawrence Yun, chief economist at NAR. “The median income of investment buyers today is lower than it’s been in recent years.” TRD


Related Articles

arrow_forward_ios
Existing home sales were on the upswing in September following a slight dip in August. (iStock)
Existing home sales rebound in September, rising by 7%
Existing home sales rebound in September, rising by 7%
Contracts rose everywhere, especially in the South and Midwest (Unsplash / Birgit Loit)
August home contract signings rise after 2 months of decline
August home contract signings rise after 2 months of decline
Home sales dipped in August after two months of increases
Home sales dipped in August after two months of increases
Home sales dipped in August after two months of increases
The number of homes under contract fell 1.8 percent in July, the second straight month of declines as eager buyers await more supply. (iStock)
Fewer homes, fewer contracts: pending home sales dip again in July
Fewer homes, fewer contracts: pending home sales dip again in July
Out of pocket plaintiff: Judge rules against TAN in NAR antitrust case
Out of pocket: Judge strikes down challenge to NAR’s off-market listing ban
Out of pocket: Judge strikes down challenge to NAR’s off-market listing ban
Slowdown in pending homes sales signals “turning point” for housing market
Slowdown in pending homes sales signals “turning point” for housing market
Slowdown in pending homes sales signals “turning point” for housing market
Last week, 12 real estate groups co-signed a letter addressed to President Biden imploring the administration to allow the moratorium to expire (Getty)
Biden extends CDC eviction moratorium one more time
Biden extends CDC eviction moratorium one more time
(iStock/Illustration by Kevin Rebong for The Real Deal)
New housing construction leaves US 5.5 million units short
New housing construction leaves US 5.5 million units short
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...