Second Guessing Second HomesSecond home sales and prices in the investment sector plunge as speculators bail and leave the market weak, but attractive to those who still have discretionary cash.
Tuesday, May 01, 2007
By Broderick Perkins, Realty TimesIt may be a better time to buy a second home than it is to buy a primary residence. The nation's second home market is repelling investors in droves and the blow is so crushing to the second home market, the nation's primary housing market downturn pales by comparison.
Second home sales plummeted last year, falling 18.56 percent to 2.72 million, compared to 3.34 million in 2005, according to the National Association of Realtors' annual "Investment and Vacation Home Buyers Survey".
Primary home sales fell only 4.1 percent to 4.82 million in 2006 from 5.02 million in 2005.
The second home sales plunge took a chunk of market share along for the fall. Second homes now represent 36 percent of all homes sold in 2006, down from 40 percent in 2005.
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