The number of second home sales dropped in 2010, but the market share held steady, according to new data released by the National Association of Realtors.
The 2011 Investment and Vacation Home Buyers Survey found that sales volume for vacation homes fell 1.8 percent in 2010 from 2009, while the volume for investment homes fell 7.8 percent. However, vacation home sales represented 10 percent of all transactions last year and investment homes represented 17 percent, the same as in 2009.
The median prices of both vacation and investment homes also fell—the median vacation home price dropped 11.2 percent to $150,000, and the median investment home price dropped 4.5 percent to $94,000.
The survey found that the typical vacation home buyer was 49, had a median household income of $99,500 and bought a home an average of 375 miles from the primary residence. Typical investment home buyer was 45, had an income of $87,600 and bought a home 19 miles from the primary residence.
The median income of investment home buyers dropped, since lower prices allowed those with a lower income to purchase a second home. The percentage of all-cash purchases increased—to 59 percent for investment homes and 36 percent for vacation home—fueled by tighter credit standards.