The Time to Invest in a Second Home Is Right Now Shelly Schwartz - CNBC.com | |
go to original April 21, 2015 |
With interest rates projected to rise and inventory increasingly tight, the window for purchasing a second home at an affordable price may be starting to close.
Such sentiment has helped to fuel the recent boom in vacation property sales among affluent investors, many of whom are feeling flush on the heels of a six-year stock market rally. Demand is particularly high among baby boomers who are prepositioning for retirement.
"Last year's impressive increase reflects long-term growth in the number of baby boomers moving closer to retirement and buying second homes to convert into their primary home in a few years," said Lawrence Yun, chief economist for the National Association of Realtors (NAR).
Vacation home sales rose 57 percent last year over 2013, to 1.3 million properties, well above their most recent peak level in 2006, according to NAR. In fact, vacation home sales accounted for 21 percent of all real estate transactions last year, their highest market share since the survey was first conducted in 2003. NAR found in a survey that 85 percent of vacation buyers think now is a good time to purchase real estate.
Does it make sense to double down on real estate, especially in light of the interest-rate outlook and inventory dynamic?
Three main themes emerge when you consider a real estate investment properly. Check it out at CNBC.com
Related: US Dollar, as Strong as It Gets in Mexico (Yucatan Times)
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