Second home buyers are older, have more money and like warmer climates
An article by Ben Lane, of HousingWire.com. April 7th, 2014
“Fannie Mae reports that second home buyers “tend to be older, have higher incomes, and put larger down payments on their second homes than primary residence buyers.”
We hope you were holding on to something when you read those truly and deeply shocking revelations. There is little comfort in the fact that certain homebuyers are not getting any younger, or no less predictable.
The information comes from Fannie Mae’s latest Housing Insights, which focuses on the second home buyer. “A typical second home buyer is 47 years old, comes from a two-earner household, and finances the purchase of the home 61% of the time,” the report states.
In another revelation, the report states that the secondary home market grew significantly during the housing boom but that growth ceased following the housing bust.
Readers of HousingWire will already know that vacation home sales were up nearly 30% in 2013. Too bad you can’t count on second-time homebuyers to do anything but predictably buy a second home.
The report holds other information like the fact that second home buyers still tend to buy in warmer climates.
Yes, we knew that, and the states they pick also never seem to change.
“Since January 1998, 34% of all second home mortgages originated on properties located in Florida, California and Arizona,” Fannie’s report states.
And even though those states experienced home price volatility, with home prices decreases of 40% or higher in each state from 2006-2012, it hasn’t dampened buyers’ interest in those states.
C’mon, there is a condo in Alaska with your name on it. Any takers?
With second home buyers typically being wealthier, they are more prone to buy in cash. “The recovery in financial markets has allowed many second home buyers, who are typically older and more likely to own financial assets, to sell some of their assets to buy second homes or use dividend payments from these assets to cover second home mortgage expenses,” Fannie report states.
The report also predicts that an aging population could lead to an increase in second home sales in the future. “As the population continues to age, we expect people to continue to use their savings to buy second homes, thereby contributing to a segment of the mortgage market that will continue to grow in the years to come,” the report says.
Now as long as your jaw is still attached to your head, get busy getting older so you can buy that second home you’ve always wanted.
California and Florida are waiting! And don’t worry, they won’t change.” ( End of Ben’s article.)
From Bob Phillips: Can you believe how fortunate WE are, to already live in an area, that many folks are thinking of retiring to? Personally, I can’t imagine moving from here to Florida. But then, I’m not big on humidity, hurricanes, or big bugs, flying or crawling all around me. Of course Floridians probably have similar objections to our higher prices, traffic jams, or earthquakes, LOL.
Thinking of selling the big old empty nest? Or just buying a second home, and keeping your present home in the family? I have helped numerous couples with similar needs, and am well prepared to assist you too. Just give me a call – 949-887-5305, or shoot me an email – BobPhillipsRE@gmail.com – and let’s talk about your real estate goals.