Today’s Vacation Home Buyer

Resort & Second Home Real Estate Forum 2011 Midyear Legislative MeetingMay 12, 2011

Housing Market in Transition

• Housing market recovering slowly

• Mobility stalled – people not moving as often

• Higher income households doing better

• Consumers still uneasy about the future

Sales of Primary Residences DriveHome Sales

thousands

Source: NAR

Vacation Home Sales DownNearly 50% from Peak

Source: NAR

Vacation Homes Are NowAbout 10% of the Market

Source: NAR

Vacation Home Prices Fell Sharply in 2008 and Have not Recovered

Source: NAR

Some Notable Shifts in Reasons for Purchasing a Vacation Home

Source: NAR

Shift Toward Small Towns and Away From Resort Locations Since Peak of

the Market

Source: NAR

Location of Purchase and Type of Home Change Little from Year-to-

Year

Source: NAR

All Cash Transactions Growing Among Vacation Home Buyers

Source: NAR

Foreclosures a Growing Segment of Vacation Home Sales

Source: NAR

Vacation Home Buyers Find their Home Less Frequently Online and More Often by Word-of-

Mouth than Other Buyers

Source: NAR

Higher Income Households Purchase Further Away from Primary Residence

Source: NAR

When Targeting Potential Vacation Home Buyers

Also Consider the Following…

Vacation Buyers looking within 500 miles of their Primary Residence more often:

Vacation Buyers looking beyond 500 miles of their Primary Residence more often:

Purchase a single-family home Purchase a condo

Buy in a rural area Buy in a suburb or resort area

Find their home thru “local” sources Find their home online

Purchase opportunistically Consider rental income potential

Source: NAR

Questions?

2011 Vacation and Investment Home Buyer ReportItem #E186-55-11

Available in the REALTOR.org Store

Paul C. BishopVice President, Research

pbishop@realtors.org