We just came across a recent article, written by Broderick Perkins of the Salinas Californian newspaper, which reported on how well the market for vacation homes and rental properties was stacking up against that for primary residences. According to the report, vacation homes have fared better than investment properties and primary homes in that the percentage decline in sales from the previous year was minimal. Vacation home sales fell just 1.8% while rental properties dropped 7.8% and primary residence sales sunk 5.6%. Sources used in the article noted that vacation home sales were strong thanks in part to lower real estate prices. It's to believe but nearly 59% of second home buyers paid cash for their second homes according to the National Association of Realtors.
The median home price for vacation homes fell to $150,000 in 2010 which was a 11.2% decline from 09'. Median investment property prices also fell 10.5% during the same period and the median price for primary residences dropped 4.5% to $176,700.
You can read the article in its entirety here:
http://www.thecalifornian.com/article/20110408/LIFESTYLE/110407032/1001/news/Broderick-Perkins-Vacation-investment-homes-yield-lower-prices-than-primary-home-market-?odyssey=nav|head
