Have you ever dreamt about buying a vacation home? The NAR 2016 Investment and Vacation Home Buyers Survey reveals some surprising, and reassuring to the dreamers in all of us, statistics about vacation home buyers.
While buyers of primary residences typically purchase homes because of the desire to be a home owner or due to a job relocation, buyers of vacation homes are motivated by other factors. Thirty-seven percent of vacation home buyers plan to use their property for vacations and family retreats, 16 percent plan to convert their vacation home into their primary residence in the future, and 13 percent purchased because of low real estate prices and the buyer found a good deal.
The median vacation home purchase price was higher in 2015 than in 2014. The typical price was $192,000 for vacation buyers, up from $150,000.
Thirty-nine percent of vacation buyers paid all cash for their property purchase. When financing their purchase, 52 percent of vacation buyers financed less than 70 percent of their purchase.
Among vacation buyers, 27 percent purchased in a resort area, 19 percent purchased in a small town, and 16 percent in a rural area—higher than other buyer types. Forty percent of vacation buyers purchased in a beach area, 19 percent purchased in the mountains, and 19 percent purchased a vacation home on a lake front.
While a detached single-family home is the most common type of home for all buyers, higher shares of vacation buyers purchased condos and townhomes in 2015. The median square feet of a vacation home was 1,500. The typical vacation property was 200 miles from the buyers’ primary residence.
More than 80 percent of vacation buyers reported that now is a good time to purchase real estate. Among primary residence buyers, 15 percent are very likely to buy a vacation property in the next two years.