Sales of second homes are surging, as baby boomers seek investment and vacation properties in record numbers. A study by the National Association of Realtors (NAR) ( www.realtor.org ) said 23% of all properties purchased in 2004 were for investment while another 13% were vacation homes. NAR reported a record 2.82 million second-home sales in 2004, up 16.3% from 2003.
The typical vacation home buyer was 55 years old and earned $71,000 in 2003. Investment property buyers had a median age of 47 and earned $85,700. The median price of a vacation home was $190,000 compared with $148,000 for investment properties.
The most frequent motivation for buying a second home was to diversify investments. Others sought rental income or a family retreat. But nearly one of five second homes will become a primary residence after its owners retire.
TOP 10
Towns for Second-Home Investments
 Asheville, N.C.
Park City, Utah
Ashland, Ore.
Port Townsend, Wash.
Beaufort, S.C.
South Lake Tahoe, Calif.
Daytona Beach, Fla.
Sunriver, Ore.
Myrtle Beach, S.C.
Charlevoix, Mich.
Source: EscapeHomes.com. |