Vacation home sales plummet

[Dustin Ruhl]

Vacation home buying has gone from a normal market to an outrageous one. People are seeing a rise in vacation home cost to the most it has been since 2006. In general the home buying cost has gone up due to the increasing of people moving where the job markets are better. This has sent the vacation home costs skyrocketing. Mostly these markets that people are seeing the most demand in is the South and the west. This is were the market has the most up this year and will potentially continue to grow from here on out. Also, the investors of rental and fixer upper homes are seeing the highest they have seen for return on their investments since 2012. This increase in return on the sell has made a boom in the industry to start getting out there and buying and selling which has made the total overall price on the market rise. However, all this increase in price has made people just stop purchasing those vacation homes across the country at a whopping 21% decrease. That is quite a lot of decrease when you're thinking about the amount of vacations home across the country. So, all in all, house prices going up means vacations home buying goes down.

Key Takeaways:

• Low mortgage rates helped fuel the increase in sales to individual investors.
• There was a substantial drop in the number of vacation home properties.
• The uncertainty in the financial markets may have kept a damper on the number of sales.

"Low levels of inventory pushed median home prices for vacation and investment properties to levels not seen in a decade."

Read more: http://www.housingwire.com/articles/39821-vacation-home-sales-take-a-plummet-in-2016