Vacation Home Property Sales Surge

Solitude - Jackson Hole, Wyoming

Another great post from our friends at KCM Blog…..

The American desire to own a second home as a vacation home is alive and well!

The National Association of Realtors analysis of U.S. Census Bureau data shows there are approximately 8 million vacation homes in the U.S. Their 2014 Investment and Vacation Home Buyers Survey shows vacation home sales improved substantially in 2013.

NAR Chief Economist Lawrence Yun said favorable conditions are driving second-home sales:

“Growth in the equity markets has greatly benefited high net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” he said. “However, vacation-home sales are still about one-third below the peak activity seen in 2006.”

Here are the key findings from the report:

Raw Numbers

  • Vacation-Home sales rose 29.7 percent to 717,000 from 553,000 in 2012
  • Sales accounted for 13% of all transactions last year, up from 11% in 2012
  • The median price was $168,700, compared with $150,000 in 2012, reflecting a greater number of more expensive recreational property sales in 2013
  • 42% of vacation homes purchased in 2013 were distressed homes (in foreclosure or short sale)

Buyer Profile

  • The typical vacation-home buyer was 43 years old
  • The median household income was $85,600
  • Buyers plan to own their recreational property for a median of 6 years
  • 33% said they were likely to purchase another vacation home within two years
  • 82% of all second-home buyers said it was a good time to buy (compared with 67% of primary residence buyers)

Reasons for Purchasing

Lifestyle factors remain the primary motivation for vacation-home buyers:

  • 87% want to use the property for vacations or as a family retreat
  • 31% plan to use it as a primary residence in the future
  • 28% wanted to diversify their investments or saw a good investment opportunity
  • 23% plan to rent to others

Location

  • 41% of vacation homes purchased last year were in the South
  • 28% in the West
  • 18% in the Northeast
  • 14% in the Midwest

The vacation homebuyer purchased a property that was a median distance of 180 miles from their primary residence (down from 435 in 2012)

  • 46% were within 100 miles
  • 34% were more than 500 miles

Financing

  • 38% of vacation-home buyers paid cash in 2013
  • The median down payment was 30%, up from 27% in 2012

To find out more about the Jackson Hole Vacation Home market call Christy and Garth Gillespie – the Jackson Hole Experts – Jackson Hole Real Estate Associates at 307-413-5243 or email us at garth@jhexperts.com.

Jackson Hole Luxury Homeowners –

Exterior - northside_revToday’s luxury homeowners and buyers are savvier and more confident than ever according to a study by Better Homes and Gardens Real Estate.  Christy and I found the information very interesting and it seems to support what we are seeing in the Jackson Hole Real Estate market today.  In 2012 we had a total of 49 transactions over $3,000,000 and as of today we already have 35 transactions with some of our strongest closing months ahead.

The national survey of over 500 luxury home buyers had many interesting findings:

  • 75 percent of the luxury home buyers believe home ownership is a more sound investment than the stock market and 57 percent of employed luxury homeowners believe home ownership is a bigger indicator of success than their job or title.
  • A majority of luxury homeowners surveyed (53%) prefer owning multiple “lifestyle” homes to support activities like skiing and golf.
  • 58% of luxury home buyers already own multiple homes to support their lifestyle activities.
  • 60% of luxury buyers surveyed would rather have as many upgrades as they can afford verse larger square footage.
  • Nearly all (94%) of luxury home buyers would be willing to give up 1,000 square feet of living space from their next home in order to get a lifestyle amenity they desire, such as — Living in a better neighborhood (54%), living in a house that has “character” (51%), more land (44%), access to dining and entertainment (39%).
  • (66%) would rather have a “smart” home verse a “green”” home.
  • (87%) would not consider living in a home that is not tech-friendly.
  • Three of the top 5 luxury home essentials are outdoor orientated:  A garden oasis (53%), outdoor fire pit and or fireplace (50%) and a separate guest house outside of the main home (47%).

Those are some very insightful results.  If you are thinking of buying a luxury home or are in the process of remodeling or building one in Jackson Hole these results should be considered.

If you have any interest in learning more about Jackson Hole’s luxury real estate market please feel free to email us at  garth.gillespie@jhsir.com or drop us a phone call at 307-413-5243.