NJ Real Estate as a Vacation / Investment Home Part 1

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.

The overaell decline was expected because second and vacation homes are descretionary purchases, and there is a natural tendancy to pull back from big ticket items in periods of economic uncertainty. In addition, there was a disruption in the mortgage market with a significant tightening of credit in the second half of 2007.

The typical vacation home purcahse was $195,000 in2007, down 2.5% from 2006, while the median investment home coast $150,000, the same as 2006. 28% of vacation home buyers paid cash for their property, as did 35% of investment buyers.

For more information about the possibilities of owning your own oasis on the Jersey Shore, please contact me any time at…

Dan Kurland, dkurland@weichert.com or (732) 233-6969.