Grab your sandals and sunglasses, because the vacation home market is hot, hot, HOT!
Every year, the National Association of REALTORS puts together an Investment and Vacation Home Buyers Survey to get a pulse on the market. The 2014 survey revealed the highest sale numbers for vacation homes since its inception in 2003, with vacation home sales increased to a total of 1.13 million homes sold. To put that into perspective, 2013 only had 717,000 vacation homes sold.
Sarasota Vacation & Beach Homes Surge In Popularity
When it comes to Sarasota, this news is even better. The most popular vacation homes are single-family beach homes, and it turns out that vacationers are willing to travel hundreds of miles to their vacation homes. The median distance from home owners’ primary residence was 200 miles!
This boom in popularity has been long awaited, as interest in vacation homes had dwindled in recent years. Many real estate savants have been predicting this turn-around for quite some time and it’s fantastic to see it happen. For sellers, this is a great time to try to turn a profit. For buyers, inventory levels are high, resulting in better selection and variety.
Investment Market Not So Hot
Closer to home, local investment property sales across the nation declined for the fourth consecutive year. While the number of investment homes sold declined, so did the actual profits for investment buyers. Where the median household income for investment buyers was $111,400 in 2013, it fell to only $87,680 for 2014. That’s not to say money can’t be made with savvy investments, but it does seem to be getting tricker than in years prior.
The major contributing factors to the decline in investment homes are the shrunken distressed property market and the rise in home prices. This makes sense, as investment buyers tend to look for amazing deals, and Sarasota’s hot market lends itself to fair deals over phenomenal ones.
Distressed Properties Still In Motion
While the number of distressed properties has declined overall, they still contributed to 44% of investment homes and 45% of vacation homes. That’s good news for short sale sellers, and those who are still looking out for smart investment opportunities.
