Vacation Home Sales Rise in 2011
Written by Nick Copley Friday, 06 April 2012 09:51
The National Association of Realtors (NAR) just reported that sales of vacation homes in the US rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010. This is certainly an encouraging sign after falls in prior years and reinforces the trend seen in fractionals, where overall 2011 sales were up 4%.
Vacation-home sales accounted for 11 percent of all transactions last year, up from 10 percent in 2010. All-cash purchases have become fairly common with the NAR reporting 42 percent of vacation-home buyers paid in cash.
The typical vacation-home buyer was 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years according to the NAR. The anecdotal reports I've seen and heard for buyers of both private residence clubs and destination clubs puts them at about the same typical age of 50-55, although incomes are much higher, typically $200,000+.
The median vacation-home price in the NAR survey was $121,300, down 19.1 percent from $150,000 in 2010. To add some perspective, the average price per share in a private residence club (PRC) last year was $254,000 according to research from Ragatz Associates. The average PRC prices have fallen 32% since 2007 according to Ragatz and we've highlighted some lower prices at residence clubs in earlier articles.
Written by Nick Copley Friday, 06 April 2012 09:51
The National Association of Realtors (NAR) just reported that sales of vacation homes in the US rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010. This is certainly an encouraging sign after falls in prior years and reinforces the trend seen in fractionals, where overall 2011 sales were up 4%.
Vacation-home sales accounted for 11 percent of all transactions last year, up from 10 percent in 2010. All-cash purchases have become fairly common with the NAR reporting 42 percent of vacation-home buyers paid in cash.
The typical vacation-home buyer was 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years according to the NAR. The anecdotal reports I've seen and heard for buyers of both private residence clubs and destination clubs puts them at about the same typical age of 50-55, although incomes are much higher, typically $200,000+.
The median vacation-home price in the NAR survey was $121,300, down 19.1 percent from $150,000 in 2010. To add some perspective, the average price per share in a private residence club (PRC) last year was $254,000 according to research from Ragatz Associates. The average PRC prices have fallen 32% since 2007 according to Ragatz and we've highlighted some lower prices at residence clubs in earlier articles.
