Sorry, there is no real posting today. I've been out on the golf course watching a 36-hole qualifier for the U.S. Junior Amateur held at the Golf Club of Avon in Connecticut. Nice course in fine condition. When we left an hour ago, it looked as if the qualifying number for four spots would be 142 or 143. My son Tim shot 151, after a good morning round of 73.
I was greeted at home by the latest housing numbers that were not only bad for May but the U.S. Department of Commerce also revised downward the jump in demand number for April (by about 50,000 homes). The supply of unsold homes is up to about seven months worth. Median price of new homes also dropped.
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.
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