The 2015 Investment and Vacation Home Buyers Survey show there were 1.13 million vacation-home sales in 2014, up over 57% from 2013, and the highest amount since the National Association of Realtors began the survey in 2003. The number of vacation sales nearly doubled the combined total of the previous two years. They accounted for 21% of all transactions in 2014, the highest market share since the beginning of the survey.
The increase is likely reflective of growth in the number of baby boomers approaching retirement and purchasing second homes which will eventually become their primary homes. Real estate is an attractive long-term investment and steadily increasing home prices provide reassurance to those considering vacation-home purchases. Strong growth in the stock market has increased confidence as well and fueled second home purchases.
Interestingly, the median sales price for vacation homes nationwide declined from the previous year. The increase in vacation buyers purchasing in the South likely contributed to the decline in overall sales price because of the traditionally more affordable homes. An exception would be the purchase of beachfront homes commanding new premiums throughout Florida. 44% of vacation-home buyers purchased in a beach area, 19% purchased in the country and 17% in the mountains. 46% of vacation homes were in the South, up from 41% in 2013.
Information above came from the 2015 Investment and Vacation Home Buyers Survey conducted by NAR.