Not only did the vacation-home market have its largest gain since the National Association of REALTORS® started tracking home sales in 2003, but the market also accounted for 13% of home sales in the U.S. last year. Additionally, nearly half of vacation sales last year were in the South.
In their 2014 Investment and Vacation Home Buyers Survey, the NAR shows vacation-home sales jumped 29.7% to an estimated 717,000 last year from 553,000 in 2012. This boost in vacation-home sales can be attributed to last year’s stock market gains and rising home values, which brought buyer’s more wealth and confidence in the housing market, according to the Wall Street Journal.
Vacation property sales
The combination of buyer’s confidence and rising wealth of high-income households is what The Wall Street Journal calls the “wealth affect,” where people are willing to spend more money because they feel more wealthy. Many households last year earned more income, with the top 60% of earners seeing a 2.3% rise in income, according the U.S. Census Bureau.
So, why were buyers purchasing vacation homes? The majority of buyers want to use the property for vacations or a family retreat, while a small percentage may use it as a primary residence in the future or plan to rent it to others. These are all great reasons to invest in a vacation home, and there isn’t a better place to look than Charleston. With gorgeous beach communities like Isle of Palms, Wild Dunes, Folly Beach, or Kiawah Island, there are plenty of great options for a vacation rental. Come stop by one of our offices and chat with our experienced real estate agents or vacation rental management team!