Buyers
Vacation-Home Sales Hit Record in U.S.
By Harris Realty

According to the National Association of Realtors® annual Investment and Vacation Home Buyers Survey, vacation-home sales rose 4.7 percent to a record 1.07 million in 2006, up from 1.02 million in 2005.  That’s good news for North Carolina’s Lake James real estate market where families have been vacationing for decades and where we have all of the top features being sought by vacation-home buyers. 

It’s beneficial for the owners of Lake James real estate and also good for buyers who can still find choice family retreats around lakefront Lake James.  In fact, any of the secluded, wooded lots in the broader McDowell County real estate—from Marion NC homes to Old Fort cabins to Little Switzerland ski chalets are poised in the vacationland of the Blue Ridge Mountains and foothills.  This is where intriguing terrain is alive with layers of colorful forests, awesome stands of flowers, bubbling creeks and waterfalls, and scampering wildlife.  All generations enjoy picnicking, hiking, hunting, fishing, skiing, and paddling around some of the most magnificent natural wonderlands in America.

The rise in vacation-home sales is based on strong demographic and lifestyle factors including a median age of 44 years (down from 52 years in 2005) and a median household income of $102,200. These buyers purchased property that was a median of 215 miles from their primary residence.   Another compelling reason for the record numbers of vacation-home buyers is that there are 44.7 million 40-somethings who could join the hunt for recreational property.

Where do people want to vacation?  Interestingly, 29 percent of vacation homes were purchased in rural areas and 24 percent in resorts.  Another 22 percent of the 1,400 respondents found suburbia to be a good place to vacation and 10 percent are heading straight into the urban, city areas.  Most of the vacation homes were purchased in the Southern states, 38 percent, with 25 percent each in the Northeast and the West, and 13 percent in the Midwest.

One might think that a condo would suffice for occasional use.  However, 67 percent of vacation homes purchased in 2006 were detached single-family homes, 44 percent of them were brand new.  Twenty-five percent of vacation-home buyers paid cash for their property at a median price of $200,000.  Married couples make up 78 percent of these buyers and 11 percent are single men.  Eighty-six percent of vacation buyers purchased one vacation home, 12 percent purchased two, and 2 percent purchased three or more vacation properties.

Why are people purchasing vacation homes?  The overwhelming majority, 79 percent, of buyers want to vacation or have a family retreat; 34 percent want to diversify investments while they are at it; 28 percent see themselves moving into the home as a primary residence in the future; 25 percent also want the tax benefits. 

The 2006 Profile of Second-Home Owners provided other details about what people are looking for in a vacation home.  Two-thirds want to be close to an ocean, river or lake; 39 percent close to recreational or sporting activities; 38 percent close to vacation or resort areas; and 31 percent close to mountains or other natural attractions.  Beaches, boating, hunting, fishing, golf; biking, hiking, horseback riding, skiing and winter recreation, and tennis are preferred.

And, apparently, this vacation-home trend is only just beginning and will be a ten-year cycle.  Sellers in our vacation haven, get ready!