This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Suddenly, We're Shopping for Vacation Homes Again

"Although vacation homes' prices are starting to rise, the cost is still incredibly affordable compared with prices 10 years ago," HomeAway CEO Brian Sharples said.

The NAR said 46% of vacation-home buyers paid all cash and that large down payments were typical for those who borrowed.

"The typical vacation-home buyer," the NAR said, "was 47 years old, had a median household income of $92,100 and purchased a property that was a median distance of 435 miles from their primary residence; 34% of vacation homes were within 100 miles and 46%were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years."

Potential buyers should take to heart that last fact -- the median 10-year holding period. Because the market for vacation homes can be volatile, it's risky to buy a home you may have to sell quickly.

Other factors to consider: Will the family really want to vacation in the same place year after year? If the parents or grandparents buy, what will happen to the property after they pass away? If the home will be used by an extended family, how will scheduling conflicts be resolved?


And most important: Can you afford to maintain the property even after a setback such as a job loss or a shortage of renters?

If all the answers to these questions make a vacation home look like a sensible purchase, now is a good time to start looking. Prices are still well below their peaks of the past decade, and mortgage rates are still incredibly low.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HOME $15.29 1.12%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs