Low housing prices in several markets have made owning vacation homes a reality. And surprisingly, these family retreats aren’t in far-flung locations, but closer to home in suburban and rural areas.
The National Association of Realtors’ 2012 Investment and Vacation Home Buyers Survey show that the typical vacation-home buyer purchased a property that was at a median distance of 305 miles from the buyer’s primary residence.
"People want to stay within driving distance because they're more able to maintain the homes, they have better networks in place and friends and family nearby to use and sustain the homes," the Wall Street Journal quoted Jon Gray, vice-president of HomeAway.com, a website that lists vacation rentals.
The sale of vacation homes, too, saw a good year in 2011. According to statistics provided by NAR, the sale of vacation homes saw a seven percent increase last year. Close to 502,000 vacation homes were sold as compared to 469,000 in 2010.
Factors such as lowest median sales price in eight years, low mortgage rates and the desire for a family retreat catalyzed this increase in sale of vacation homes.
“The purchase of vacation homes is moving back into the mainstream for a greater number of Americans who are attracted by low prices, rental income potential, and use as a retreat for busy families to get together every year,” Brian Sharples, chief executive officer of HomeAway.com said in a statement.
Besides using these properties as family retreats, a majority of homebuyers bought vacation homes to use as rent-generating avenues. The HomeAway.com survey showed that 70 percent generate enough rental income to cover half or more of their mortgage, and 51 percent cover at least three-fourths of their mortgage. Close to 71 percent cited rental income potential as a factor that influenced their decision to purchase a vacation home.
