Sales of "vacation," or "weekend," homes rose nearly 5 percent nationwide last year, up by a half million to 1.07 million, according to the National Association of Realtors, as reported in the Hartford (CT) Courant. I'm not a big fan of the NAR's observations, which tend to hyperventilate on the optimistic side, but their numbers do seem to reflect reality.
Across the nation, sales of primary residences fell 4.1 percent, implying that at least some folks are adopting a stock-market strategy of "laddering," buying what they think is a bargain second home whose value will rise later and take the sting out of a soft market for their primary home. If the overall market snaps back, then they win both ways (something like a "double down" in blackjack). This notion is backed by responses to the NAR survey; 34 percent of those who purchased a vacation home did so to "diversify" their investments.
Not surprisingly, the share of vacation homes sold was greatest in the south, at 38 percent, followed by the west and northeast, both at 25 percent. By far, the most popular type of vacation home is single-family (63 percent), followed by condos (26 percent). Rural (29), resorts (24) and suburban (22) were the most popular locations for the homes.
In a separate report on baby boomers, the NAR indicates that boomers plan to live in their current primary homes for a median of five more years and that only 5 percent of them already own at least one vacation home. The migration south will continue.
You can read the Courant's story here, although it has a Connecticut orientation.
