Surge in second home buying in the United States

[Nicholas Wallwork]

Sales of investment and holiday homes in the United States jumped in 2011, with the combined market share rising to the highest level since 2005, according to the National Association of Realtors. NAR’s 2012 Investment and Vacation Home Buyers Survey, covering existing and new home transactions in 2011, shows investment home sales were up 64.5% [...]

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[Ryan M]

This reconfirms that now is the right time to buy.

 

[Drew Drew]

The increases on second homes is at best a leading indicator for investment properties.

Buyers of second homes will pay more for them as they aren't thinking about ROI, they're thinking of personal use.

Perhaps a better way to look at the 2nd home purchase figures would be to consider the following:

1) How many of these purchases are misclassified and are really purchases for investment?

2) What will be the effect on the rental market of all these properties no longer being "competition"?

3) Where are these 2nd home purchases concentrated? In vacation markets that really aren't investment markets?

These are just some quick thoughts. Please share yours!