Second Home Buyers
The National Association of Realtors (NAR) has issued it's "2005 Profile of Second-Home Buyers" (it can be ordered online here).
According to the report, 36% of the sales in 2004 were for second homes. That's an impressive share of the market.
Who is fueling this sector of the market? The study shows "The typical vacation-home buyer is 55 years old with a total household income of $71,000. Investment-property homebuyers have a median age of 47 years with a typical household income of $85,700."
Baby boomers play an important role in the second home market, as they are over 40% of the buyers. And, from our experience, baby boomers with college-age children are considering the purchase of a condo/townhouse/home for their children to live in while attending college. In this way, the parents can take advantage of the appreciation in a rising market.