Within the housing segment, condos lag coming out and lead going in. Vacation homes go in first and come out in a later time frame. It make sense, as a lifestyle change impacts both condos and secondary housing.
According to the National Association of Realtors®, the number of vacation homes purchased in 2013 jumped 30 percent to 717,000, vs. 553,000 in 2012. These numbers exclude institutional investors. But while this looks like an impressive increase, we are still lagging 33 to 40 percent behind 2006.
Carolinians with discretionary income want to make sure that appreciation rates are good before they purchase a secondary home to live in part-time or rent. Last year, 13 percent of all investment properties were vacation homes. Lifestyle (using the home), potential retirement and income opportunities are the primary motivators for this type of home purchase.
As homes regain value, several interesting trends are happening. Millennials are coming into the market for the first time. Boomers are downsizing and/or buying vacation homes, and the elderly are selling their paid homes to move into communities with a more predictable lifestyle.
While it varies by generation, housing once again is leading us out and moving us forward.