More People Investing in Vacation Homes

2013 was a good year for both the property market and the mortgage market. Some 5.07 million homes were sold while the home loan origination volume was $652 billion. The improvement in both markets and in the economy as a whole led to a sharp increase in the number of vacation homes sold. This is a clear sign for a stable recovery, according to economists.

Some 717,000 vacation homes were sold in 2013 in the USA. The increase in sales from 2012 to 2013 was the impressive 30%. Furthermore, the share of vacation homes in the total number of sold properties was 13%. This is the highest share which these properties have reached since 2006. The increase in demand for such properties led to an increase in prices as well. They went up by 12.5% from 2012 to 2013. The median sales price for a vacation home in 2013 was $168,700.

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A survey carried out among vacation home buyers has revealed that these properties are not extensively used for investment purposes. Only about 25% of the participants said they planned to rent out their properties at least for some time during the year. At the same time, 31% of participants intended to use their vacation home as their primary residence after retirement. Just around 5% of buyers had already sold their properties for profit or planned to do so within 2014.

The forecasts for 2014 are not so bright, however. Most people who wanted to invest in a vacation home have already done so taking advantage of the lower mortgage rates and the recovery of the housing market. Now as both mortgages and properties are becoming more expensive, the demand is projected to drop. On the other hand, the economy is on the growth curve and this can make the decrease significantly smaller.

If you are looking to invest in vacation homes or investment homes, now might be a good time as well. The rates are still low enough to get a nice rate and be happy with the payments.

Mailynne

Mailynne

Mailynne serves as a content strategist and writer for mortgage.info. She is ahighly task-oriented strategic planner and experienced writer. Over the past 10 years, Mailynne has managedcontent for both large corporations, non-profits and businesses. She specializes in managing digital marketing,branding and web development content. Mailynne has worked with a variety of local, national and international organizations.

Contact: mailynne@mortgage.info
Mailynne

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