What you need to know about the vacation home market

According to the National Association of Realtors, vacation home sales have increased 57.4 percent since 2014. This kind of increase hasn't been seen since 2006.

Buyers spent an estimated $1.13 million last year on vacation homes, the highest amount recorded since 2003. They totaled a whopping 21 percent of all 2014 home transactions.

Despite this overall growth, the price did drop 11.1 percent, a reduction of almost $20,000 from 2013.

The latest demographic of vacation home buyers includes the following traits:

  • 20 percent are most likely to begin looking for a home online
  • 70 percent of buyers used a mortgage option
  • 85 percent believe the time they chose to buy property was ideal
  • A little over a quarter of buyers plan to keep the property for more than 10 years
  • Purchasing with a real estate agent is the most popular payment method.

The breakdown of the most popular vacation home purchase locations for 2014 are:

  • 46 percent in the South
  • 25 percent in the West
  • 15 percent in the Northeast
  • 14 percent in the Midwest.

Metro areas in the South and Southwest with lower costs of living and warmer weather are most likely to see even more purchases by the baby boomer generation. In addition, the most popular vacation location is by the beach and with at least 1,500 square feet of relaxation space.

Before purchasing a vacation home, be sure you visit the home if possible and have a reliable home inspection company search for any problems. Alban Inspection employees are trained in radon testing, mold testing and a range of other issues that could affect a home. 

Schedule an inspection today or visit our website to ensure your new getaway paradise has no hidden issues or underlying problems, before you agree to the purchase price.