Vacation Home Sales A Bright Spot In A Troubled Marketplace
Recently, the National Association of Realtors reported that 12 percent of all existing home sales last year were not primary residences — instead the sales were vacation homes, condos and secondary residences. Why, given that almost 1.3 million homes were lost to foreclosure last year, is the secondary home market still thriving?
It seems clear to this author that another group of households is doing very well. Not only can homeowners in the group support one house, they can afford at least two. The implied reservoir of wealth represented by vacation property owners is important because it means there are large numbers of people out there with dollars that can be used to move the economy back to previous levels of home ownership.
Among that group of individuals, primary residential and vacation home sales will continue to thrive. That’s good news for our beleaguered real estate industry.
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