Chicago, IL (PRWEB) April 09, 2014
According to Realtormag.realtor.org, the National Association of Realtors’ 2014, Investment and Vacation Home Buyers Survey, vacation-home sales rose 29.7 percent last year to reach 717,000. CF Funding thinks that this report that was released on April 2nd is quite a large jump in comparison to the previous year’s 553,000. At the same time, investment-home sales decreased by 8.5 percent in 2013, at 1.1 million in comparison to 2012’s 1.21 million investment home sales.
Vacation home sales represented 13 percent of all transactions in 2013. The improvement in vacation home sales was expected by NAR Chief Economist Lawrence Yun, who said, “Growth in the equity markets has greatly benefited high-net-worth households, thereby providing the wherewithal and confidence to purchase recreational property.” CF Funding is happy to see an improvement in this market, although vacation home sales are still not at their peak levels seen in 2006 (about 1/3 less). The average vacation homebuyer was 43 years old with a median household income of $85,600. Most properties purchased were within 180 miles from the purchaser’s primary residence, and 46 percent were within 100 miles.
CF Funding expected a decrease in investment activity as prices rose in 2013, as confirmed by Lawrence Yun. Yun addressed the decrease in investment purchases by explaining that “prices were rising quickly [in 2013] along with a declining availability of discounted foreclosures over the course of the year… In 2011 and 2012, investment property was a no-brainer because home prices had sharply overcorrected during the downturn in many areas, creating great bargains that could be quickly turned into profitable rentals. With a return to more normal market conditions, investors now have to evaluate their purchases more carefully and do their homework.” About 47 percent of investment home purchases in 2013 were distressed sales, and the median investment-home price was $130,000.
According to the NAR, the 2014 survey includes answers from about 2,203 homes purchased during 2013, and is controlled for age and income to limit biases in the characteristics of respondents.
Homebuyers looking to purchase a vacation home should contact CF Funding Corporation today for a free preapproval. Now is a great time to buy, but rates are rising! Call (630)328-8900 or visit http://www.cffunding.com.