The economy may be facing some challenges, but that didn't stop many buyers from investing in vacation properties last year. NAR's 2010 Investment and Vacation Home Buyers Survey shows vacation home sales rose 7.9 percent to 553,000 in 2009, compared to 513,000 in 2008.
Ninety percent of survey respondents plan to use their second home as a family vacation retreat. Only one in four plan to rent it to tenants. Twenty-six percent intend to make the property their primary residence in the future.
The median sale price of a vacation home was $169,000 in 2009, compared with $150,000 in 2008.
In contrast to vacation homes, investment home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. The median transaction price of an investment property purchased in 2009 was $105,000, compared with $108,000 in 2008.
These are intriguing figures, considering the rise in foreclosures across the nation affecting many markets, as many homeowners are displaced from their primary residence. It would seem that the secondary vacation home in markets with an appeal to many buyers seeking deals in places such as Florida, or other coastal States.
In Michigan, the secondary home market tends to be concentrated along the shorelines of Lake Michigan, or in the mountainous regions in the Northern part of the State. However, there are private lakes all over the State, and sometimes these are used as second homes as well.
With the Statewide increase in foreclosures, many investors are picking up these types of properties and using them as second homes and seasonal rentals. If you are interested in finding out what types of waterfront or private rural properties are available in the Southwest Michigan area, I can help you by setting up the local MLS to automatically send you listings for these types of homes when they become available. I can be reached at: 269-441-8182 or through my website at: www.michaeldelaware.com.
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