Given the demographic demand, the second home market is expected to remain healthy for many years to come. The size of the second home market is significant. Analysis of the US Census Bureau data shows there are 7.5 million vacation homes and 39 million investment units in the United States, compared to 75.2 million owners-occupied homes.

The long term demand for second homes looks favorable because there are large numbers of people in their prime years for buying a second home. Currently, 38.7 million people in the United States are ages 50-59, 45.3 million people are between 40 and 49, and another 40.9 million are 30-39. These younger segments will drive the second home market over the next decade.

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Vacation and investment home purchases have followed different cycles over the past two years. Investment home sales declined sharply in 2006 as sepculators dissapeared, and the pattern continued in 2007 with an 18% decline to 1.35 million sales nationaly. Vacation home sales set a record in 2006 becuase there was pent up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years. in 2007, recreational property sales declined 30%.

Second home buyers know that homeownership offers imediate benefits and long-term value. in 2007 8 in 10 second home buyers see their property as a good investment. In addition, 44% of all vacation home buyers and 57% of investment buyers said they were likely to purchase another home within 2 years.

For more information on purchasing a vacation or investment property on the Jersey Shore, contact Dan Kurland at (732) 233-6969 or dkurland@weichert.com.

Vacation sales are back to traditional levels, while investment transactions returned to pre-boom sales activity.

In 2007, buyers purchasing investment homes accounted for 21% of home sales, while vacation homes made up 12% of all exsisting- and new-home sales. Sales in each segment declined more than the overall market last year.
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