Looking to own or unload that second-home?
After a few years of double-digit annual price increases, the second home market is beginning to cool. In fact, Realtors‘ chief economist, David Lereah, expects the volume of second-home sales to decline at least somewhat this year. And there’s every reason to think that some markets could be hit hard.
A main concern is who bought most second-home properties. It wasn’t serious vacationers looking for a place to take the kids on break, but investors. The fear is that if those investors start to panic, they could trigger a selling frenzy in second home sales. Thus, impacting several key markets.
Statistics compiled for Barron’s show just how big a stake investors hold. In Myrtle Beach, S.C., investors owned a full 58% of properties in 2004. Investors in Wilmington, N.C. hold 38%, Las Vegas is at 26%, and Honolulu is at 23%. The norm is considered closer to 14%.
Barron’s has written an indepth article on the subject. To read it in its entirety, click here.
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