Ormond Beach 2nd Home Market

The National Assn. of Realtors released figures showing the combination of vacation and investment-home sales slipped to 30 percent of all existing and new-home transactions in 2008. Lawrence Yun, NAR chief economist, said the findings are understandable given the economic backdrop. "We expected vacation-home sales to fall given the impact of a declining economy on discretionary purchases," he said. "A steady share of investment-home sales results from buyers taking advantage of deeply discounted prices in many areas, with a smaller portion of new homes in the sales mix."

With large numbers of buyers coming into the prime years for purchasing a 2nd home, the long-term outlook for this industry looks good. According to NAR, currently, 39.2 million people in the United States are ages 50 to 59 - a group that dominated sales in the first part of this decade. An additional 44.8 million people are between 40 and 49, and another 40.7 million are 30 to 39.

Yun is positive about the sector: "While economic factors can affect sales from one year to the next, the fundamental demand from these large population groups will remain," Yun said. "Given that most people become interested in buying a second home in their 40s, the bulge of population approaching middle age should drive the second-home market over the next decade."

Ormond Beach is an attractive market for 2nd home and vacation home buyers, with its great weather, large choices of activities, and many view and oceanfront condos available. NAR studied the vacation home buyer, and found that the typical purchaser in 2008 was 46 years old, had a median household income of $97,200, and purchased a property that was a median of 316 miles from their primary residence; 35 percent were within 100 miles and 36 percent were 500 miles or more.

When asked about their reasons for purchasing a vacation home, 89 percent of buyers wanted to use the home for vacation or as a family retreat; 27 percent to diversify investments; 27 percent to rent to others; 26 percent to use as a primary residence in the future; and 17 percent for use by a family member, friend or relative.

To relate these numbers to the Ormond Beach real estate market, 26 percent of vacation homes were purchased in small towns, 23 percent in a rural area, 23 percent in resorts, 20 percent in a suburb, and 8 percent in an urban area or central city. Seventy percent of vacation homes purchased in 2008 were detached single-family homes, 18 percent condos, 5 percent townhouses or rowhouses, and 7 percent some other type. So, although Ormond Beach inventory consists of plenty of condos, we do have great buys in detached single family homes as well.

Ormond Beach definitely has a place in the investment property market. NAR found the size of the second-home market to be significant. NAR's analysis of U.S. Census Bureau data shows there are 8.1 million vacation homes and 40.5 million investment units in the United States, compared with 75.5 million owner-occupied homes. For more statistics, visit NAR's Investment and Vacation Home Buyers Survey conducted in March, 2009, at their web site.

My Ormond Beach web site reviews some of the more popular condos, with photos, and many of the neighborhoods in Ormond Beach - like Breakaway Trails, The Hammocks, and Halifax Plantation. If you are considering purchase of a 2nd home or investment property, visit my Ormond Beach real estate site and contact me for specific information about any community or market dynamics.

Sherry Armstrong, Realtor
386-679-3191
sherry@sherryarmstrong.com
(resource: RealEstateChannel)