The National Association of Realtors (NAR), reports that the market share of vacation and investment home sales held steady in 2010, compared to 2009. However, the sales volume actually declined with the overall market.
In NAR’s 2011 Investment and Vacation Home Buyers Survey, we can see that the number of vacation home sales accounted for 10% of transactions last year, while the portion of investment sales were 17%, both unchanged from 2009.
“The fall in home prices has opened opportunities for more families to enter the second home market – the median income of investment buyers today is lower than it’s been in recent years,” said Lawrence Yun, NAR Chief Economist. “Even if purchases are delayed due to economic circumstances, the underlying long-term demand – the desire for purchasing second homes – remains because people in their 30s and 40s will reach the prime age for buying and will drive the second-home market in coming decades as conditions permit.”
Lifestyle factors continue to be the primary motivation for vacation home buyers, with the desire for additional rental income driving investment purchases.
More and more people are starting to look at second homes now when prices are still low. A lot of people are also looking into the possibility to generate some extra income by renting out their vacation home. At Barefoot, provider of property management software, we believe this presents a golden opportunity for vacation rental companies, as well as property management companies, to pursue new owners and offer your services to them. With new owners entering the market, comes new prospective clients that could generate more business for your company.