Real Estate News

Dip in vacation home sales, says NAR

Published: 21 Apr 2017

Several sources have predicted a rise in home sales, or at least an overall improvement as the market evens out while younger buyers finally gain confidence. However, this is a complex picture as there are several different sectors of every housing market, and they might not always appreciate at the same rate.

The National Association of Realtors recently explained the results of a 2017 home survey, which showed some changes in the vacation home market from last year. Perhaps purchases were discouraged due to an unusually high median sales price, since the release said that this figure grew by more than 4 percent in 2016.

More specifically, the number of vacation homes purchased in 2016 dropped to a nearly four year low to around 721,000. The organization's chief economist Lawrence Yun gave reasons for why this trend might be occurring.

"In several markets in the South and West – the two most popular destinations for vacation buyers – home prices have soared in recent years because substantial buyer demand from strong job growth continues to outstrip the supply of homes for sale," Yun said. As a contrast, he explained that sales to investors actually reached a four-year high, at least where single people are concerned.

This might not mean that every vacation spot is under the same concern. Still, at least one specific report seems to imply a possible drop in interest. Town & Country's Q1 report for 2017 said that sales in the Hamptons had declined.

However, this didn't apply to the 93.6 percent volume increase for the Southampton Village figures, which was one of the few bright spots in a list where three quarters of the total markets experienced some kind of decrease in volume.