According to the National Association of REALTORS® 2016 Investment & Vacation Home Buyers Survey, vacation home sales cooled off in 2015 but remained at the second highest amount in nearly a decade, while investment purchases increased for the first time in five years.
Released on April 6th, the annual NAR Investment and Vacation Home Buyers Survey breaks down the share of home sales by primary residences, vacation homes, or investment properties, and presents several characteristics of the non-primary residence transaction.
In the press release, NAR stated this survey covered existing- and new-home transactions in 2015. The report found that vacation-home sales last year declined to an estimated 920,000, down 18.5 percent from their most recent peak level of 1.13 million in 2014.
Other Highlights include:
- Low housing inventory in 2015 continued to impact housing sales and prices across the nation. As inventory remained constrained, home prices increased.
- In 2015, the share of buyers who purchased a primary residence rose to 65 percent from 60 percent after dropping from 67 percent in 2013. The share of vacation home buyers declined to 16 percent from 21 percent; however, this remains higher than historical data collected since 2003. The share of investment buyers remained unchanged at 19 percent.
- Thirty-seven percent of vacation home buyers plan to use their property for vacations or as a family retreat and 16 percent plan to convert their vacation home into their primary residence in the future.
Forty-two percent of investment property buyers purchased the home to generate income through renting the property and 16 percent purchased because of low real estate prices and the buyer found a good deal.
The report is complimentary for members. Download the full report here.