Second-home sales hardly affected by credit restrictions

Though the availability of credit is tightening in the housing market, according to The Real Deal, this is not affecting the ability of some to obtain second homes.

The source says one in 10 homes sold in 2010 went to people who were purchasing the property as a second home, intended for vacation use.

That market share was the same as in 2009, despite the current scarcity of credit, the source reports.

Many of the homes being purchased by vacationers are distressed properties, either in foreclosure or short-sale. A similar trend occurred with investors, who also reportedly purchased a disproportionate amount of distressed properties and, similarly with vacationers, were able to maintain their same market share as 2009.

"The fall in home prices has opened opportunities for more families to enter the second-home market," said Lawrence Yun, chief economist at NAR. "The median income of investment buyers today is lower than it's been in recent years."

In addition to more individuals buying second homes, it also seems that more are buying properties that cost more than $1 million, according to information from MDA DataQuick.  

More News