The National Association of Realtors (NAR) reports the Second-home market held steady in 2010
The share of home buyers purchasing second homes remained steady in 2010 compared to the year before, though overall sales volume declined.
The survey found that second-home purchases declined at the same rate as primary home purchases in 2010, both dropping 5.6 percent. Investment properties saw the bulk of that decline, falling 7.8 percent, compared to a 1.8 percent decline for vacation homes.
The percentages of investment purchases and vacation-home purchases to overall purchases remained the same as in 2009, at 17 percent and 10 percent, respectively.
South Padre Island Beach Homes
"Despite extraordinarily tight credit conditions for purchasing a second home, the market share for vacation and investment homes held steady," said Lawrence Yun, NAR's chief economist, in a statement. "A sizable number of buyers made deals with all-cash offerings."
As with primary residences, buyers under 45 made up the biggest share of second-home purchasers, though second-home buyers were more evenly distributed by age range, according to the survey.
The effect of distressed sales on the market, in general, has allowed younger people to purchase properties for investments and for financial diversification. Investment properties are an excellent opportunity for this age and type buyer.Read the full report here