Vacation, investment homes leap to 2005 levels
Friday, March 30, 2012
Sales of investment and vacation homes jumped in 2011, with the combined market share rising to the highest level since 2005, according to the National Association of REALTORS®.
NAR’s 2012 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2011, shows investment-home sales surged an extraordinary 64.5 percent while vacation-home sales rose 7.0 percent. Owner-occupied purchases fell 15.5 percent to 2.78 million.
NAR Chief Economist Lawrence Yun said a shift in investment buyer patterns in 2011 shows the market, for the large part, is able to absorb foreclosures hitting the market. "Small-time investors are helping the market heal since REO (bank real estate owned) inventory is not lingering for an extended period. Any government program to sell REO inventory in bulk to large institutional companies should be limited to small geographic areas. Even where alternatives are needed, it’s best to rely on the expertise of local businesses, nonprofit organizations and government.”