The National Association of Realtors reported that vacation home purchases made up 21% of all homes sales last year. The highest level since 2003 and a 57% increase from 2013.
Why the dramatic surge? Families, especially the top 10%, are feeling more confident in the local housing market, as well as, strong performances in the stock market.
According to NAR, the typical second-home buyer had a median household income of $94,380, 58% had two income earners and 48% financed less than 70% of the purchase price.
Another telling factor that the real estate market will continue to surge, NAR’s chief economist, Lawrence Yun pointed out that baby boomers are on the tipping point of retirement. In fact, 19% of all vacation homebuyers plan to eventually make their second home their primary residence.
So what does this mean for the Florida real estate market?
46% of the vacation homes purchased were located in the South. On a local level the Naples Area Board of Realtors (NABOR) is reporting that the luxury real estate marketing in Naples remains to be strong.
According to NABOR, closed sales increased 14% in the $1Million to $2 Million+ price segment and increased 13% in the $2Million+ price segment.
With continually decreasing inventory and strong market conditions, the Naples real estate market remains strong. If you are a homeowner that’s kept your eye on the market and believe you have equity in your home, contact us to confirm your growth in your investment. It may be the right time to sell.