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Vacation Home Sales Lower in 2010
Sales and prices of vacation homes in 2010 plunged to almost half the record number of sales in 2005 and 2006. The National Association of Realtors recently reported that sales plummeted from a high of 5.02 million in 2005 to a mere 3.81 million in 2010. Vacation homes accounted for only 10% of all sales last year, which is a testament to how hard this economic recession has hit the vacation home market. For those with a vacation home or an investment property, Affordable Financial Services offers next-day cash-out refinancing and no-documentation loans.
At the peak of the real estate boom, vacation home sales accounted for nearly 40% of the total housing market for previously owned home. In 2010, they were down to only 25%. With fewer sales came a significant drop in price. In 2010, the national median vacation home price was $150,000, which is down 11.2% from a price of $169,000 the year before.
Not only did the sales of these leisure homes drop, but purchases of these homes as investment properties that were used as rentals plunged as well. Recently, all-cash purchases have become the most prevalent in the second-home market. According to the NAR, 59% of investment buyers paid cash in 2010, as did 36% of vacation home buyers. Just four years before, in 2006, only 32% of investment buyers and 25% of vacation home buyers paid in cash.
Luckily for prospective buyers, Affordable Financial Services offers niche products for those with a vacation home. Affordable can cash-out refinance a day after a purchase, as long as it can be proven that improvements to the property were made or the home was purchased below market value. This is great for someone who purchased a steal, or for investors who want to pull some of their cash out. No-doc loans are available on second homes and investment properties and there is no limit on cash-outs.
For more information, call 1-888-500-0282 visit http://www.affordable-financialservices.com. |
