Monday, May 20, 2013

Buyers Willing to Pay Cash For Their Dream Vacation Home

Demand for vacation home sales is heating up as a strong stock market, and improving economy and job market, have given more consumers the confidence to spend more freely on second residences, summer homes and getaway spots.

Real estate brokers in resort locales from the Mid-Atlantic to Lake Tahoe say second-home buying activity has picked up over the past year or so. Low interest rates and savory deals are a big draw, they say. And with lending and down-payment requirements still particularly tight for second single-family homes and condos, cash is still the preferred way to buy for many.

Nationwide, sales of homes intended for personal vacation use rose 10.1% in 2012 to 553,000 properties, according to the National Association of Realtors' investment- and vacation-home buyers survey.

Why the strong lift in vacation-home sales? The economy is growing, the unemployment rate is generally ticking down (though initial jobless claims rose last week), and the stock market has done very well in the past year or so, Bishop notes.

"A lot of buyers, who were sitting on the sidelines, decided last year was probably a good time to take advantage of buying a vacation home," he said. "They were feeling pretty good about their own financial situation, given the growth in the market and in the economy."


1 comment:

Elizabeth J. Neal said...

Great choice of quotes! Cash is just amazingly bad money til payday boy perfect! I loved this book. I'm going to read the second one hopefully this week...can't wait!