Who's Buying Second Homes?

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Despite a changing real estate market and economic conditions, the second-home market continues with strong growth. This market includes investment and vacation property. So just who is the "typical" second home buyer? According to statistics published in 2006 by the National Association of Realtors:
Vacation-Home Buyer: Baby Boomer generation is a major influence. Boomers are in their peak earning years and the generation is on the edge of nearing retirement. The typical buyer is age 59 and has a median household income of $120,600. The majority of buyers are married couples representing 76% of all second-home owners. About 75 have no children under 18 years of age living at home. Most purchase within 220 miles of of their primary residence, close to oceans, rivers, lakes and mountains. The median price for a vacation home is $300,000. Down payment comes from savings or equity in a primary residence.
Investment-Home Buyer: Most investment-home owners rent their homes out for a least six months per year. Investors are generally lookig for rental income, value appreciation and diversification as opposed to vacation second-home buyers who are looking for a personal retreat. The majority are between 35-44 years old, are married and have no children living at home. Median income is $98,600 and purchases occur within 10 miles of the primary residence. The median price for an investment homne is $148,000.
States with the largest number of vacation and second homes are Florida, California, Texas and Michigan. According to the U.S. Census Bureau, about 44% of all vacation homes are in three of those states, Florida, Texas and California.
What do vacation-home buyers consider when seeking a place to relax and retreat? Weather, outdoor activities, cost of living, housing options, entertainment, shopping, tourism, safety, infrastructure and local attitudes (community's feelings about vacationers). In the Northeast second-home buyers look for winter and water sports as well as golfing opportunities when considering their purchase location.
Orange County New York has become a second-home market retreat for busy New York City dwellers. Common locations include Warwick and Greenwood Lake. If you are looking for that special spot in Orange County call me or visit my website at www.dianem4realestate.com