Buyers keep demand high for vacation properties

4.5.2011

A report from the National Association of Realtors finds that vacation home purchases continued to be popular among many buyers last year, as they made up a significant portion of transactions.

According to the group's annual survey of investment and vacation homebuyers, 10 percent of home sales last year were vacation homes - the same ratio as in 2009 - as many buyers looked to buy estate lots or luxury condominiums across the country.

"The fall in home prices has opened opportunities for more families to enter the second-home market - the median income of investment buyers today is lower than it's been in recent years," said NAR chief economist Lawrence Yun.

Lifestyle played the largest role in the purchases, as 84 percent of buyers said they were looking forward to using the property for vacations or as a retreat. In addition, about a third said they would eventually use it as their primary residence.

Until that time, buyers may be able to take advantage of the time they are not using the property and take in rental income, allowing them to make money off of their investment while still reaping the long-term gains.