US Holiday Home Sales Soar
A huge rise in the number of holiday homes sold in the United States last year is being attributed to overseas buyers re-entering the country’s property market.
According to an annual survey conducted by the National Association of Realtors (NAR), purchases of holiday residencies across the country rose to an estimated 1.13 million in 2014, the highest number recorded since the survey began in 2003, and double those of the previous two years combined.
Overall, sales of holiday homes accounted for 21 per cent of all property transactions made in the States in 2014.
According to the NAR data, 56 per cent of all holiday homes purchased last year were located in the south of the United States – Florida as ever being particularly popular, especially with British buyers.
Around a third of the holiday home, buyers stated that they intended to use the property solely for vacation purposes, while 19 per cent intend to convert it into their main place of residence at some point in the future.
However, while holiday home purchases may have increased, the number of properties being bought solely for investment reasons has decreased. “Despite strong rental demand in many markets, investment property sales have declined four consecutive years to their lowest share since 2010 as rising home prices and fewer distressed properties coming onto the market have further reduced the number of bargains available to turn into profitable rentals,” explained NAR chief economist Lawrence Yun.
The figures show that just 1.02 million investment properties were purchased last year, a 7.4 per cent drop from the number sold in 2013.