A record number of vacation-home purchases was offset by a sharp drop in investment-home sales, bringing down the overall number of second-home purchases in 2006, according to the National Association of Realtors. Vacation-home sales were up 4.7% to a record 1.07 million homes in 2006, compared to 1.02 million in 2005. Investment-home sales dropped 28.9% to 1.65 million homes in 2006, down from 2.32 million in 2005. According to the NAR, The typical vacation-home buyer in 2006 was someone 44 years old with an income of $102,200. The report stated that 79% of vacation-home buyers wanted the property as a vacation or family retreat, 34% wanted to use the property to diversify their investments, 28% planned to use it as a primary residence in the future, 25% were motivated by tax benefits, 22% intended for a family member or friend to use the property, 21% said they bought because they had extra money to spend, and 18% plan on renting the property to others. 
The most popular location for the homes was in rural areas; 29% of the homes were purchased in the country. But 24% were located in resorts, 22% in a suburb and 10% in an urban area or central city. Sixty-seven percent of the homes were detached single-family houses, 21% were condos and 8% were townhouses or row houses.
Investment-home buyers were younger and earned less than vacation-home buyers.
If you are interested in purchasing an investment home or a vacation home, please contact The Gebhardt Group today! With our international network of Realtors, we can help you find your dream property...anywhere in the world! Email us today at info@GebhardtGroup.com.
