Second Homes
By: Spencer Rascoff, Zillow COO | April 5, 2006
According to a study of 2005 home purchases, 40% of sales of existing homes last year were to buyers of second homes — 28% of homes were bought for investment purposes and 12% were bought as vacation homes. Wow, that’s amazing. There are of course demographic factors driving this trend, as well as favorable tax treatment for real estate investment (e.g., tax deductibility of mortgage interest). Still — it’s a staggering statistic — 4 out of 10 homes are sold to people who don’t intend to live in the home full-time.
I guess that’s what drive Zindexes in places like Vail to 2x the US.
- Stumble it!
- Categories: Real Estate Industry, Zillow
Comments
3 Comments so far
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Nubricks on April 11, 2006 9:34 am
Interesting statistics; we have seen a large increase in Americans looking to buy abroad, but specifically in the Caribbean and Costa Rica. Second homes are very fashional in the UK and it has become reality for many investors.
Peter on April 11, 2006 11:42 pm
Wow that’s some great stats …
unfortunately 8 of 10 sellers
right now in my part of California are sellers who has second homes.
seeing some bad trend of pre-foreclosures right now
http://www.theforeclosuresinfo.com/index.html
Rudy Upchurch on April 12, 2006 12:48 pm
Information on 1600 Twin Ridge Road, Lincoln, NE, seems to be in error. It has 2 stories, and was previously valued much higher. I have an interest in this house since I designed and built it, designed the landscape and lived there for 8 years.