Economic fear stirred up by politicians is affecting behaviors and now that the election is in the rear view mirror that have to somehow change their tune.
Sales of second homes off 22 percent
Expert blames tighter credit availability
Sales of vacation and investment homes slid 22 percent last year, a sign that tough economic conditions and tight lending requirements shut out buyers, the National Association of Realtors reported Monday.
Second home sales comprised 30 percent of the entire housing market, down from a peak of 40 percent in 2005 when financing was easier.
“The vacation home market really was driven by the availability of debt,” said Daniel Alpert, managing director of Westwood Capital LLC, a New York-based investment bank. “Folks were able to pick up vacation homes with very little money down and substantial loans. Given the absence of mortgage money for primary homes, one can imagine that there’s no mortgage money for vacation homes.”
Just 9 percent of sales last year were for vacation homes, down from 12 percent in 2007. Proportionally, investment properties held steady at 21 percent.
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