40% of Existing Home Sales in 2005 Were of Vacation Homes or Investments
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Vacation homes or investment properties made up four out of every 10 sales of existing homes last year, USA Today said, citing a report to be released from by the National Association of Realtors.
Baby boomers making an average of $81,400 snapped up homes for investments at a median price of $183,500 last year,up 24% from 2004,USA Today said. Almost 28 percent of homes bought last year were for investment purposes and another 12% were vacation homes, the newspaper said.
More than 75% of buyers didn’t plan to rent the homes, and about 20% said it would be a retirement home, the newspaper said.
The trend could continue for years, since the youngest baby boomers are now 42 and entering their prime earning years, USA Today said.
