Industry News

Second-home sales account for 40% of residential market

Realtor group reports double-digit sales growth since 2004

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Second-home sales accounted for about 40 percent of all residential transactions in 2005, the National Association of Realtors reported today, eclipsing the 36 percent level reported in 2004. The Realtor group's annual report, based on two surveys, found that 27.7 percent of all homes purchased in 2005 were for investment and another 12.2 percent were vacation homes. The trade group reported 3.34 million second-home sales in 2005, up 16 percent from a revised total of 2.88 million in 2004. Vacation-home sales increased 16.9 percent last year to a record 1.02 million from a revised 872,000 in 2004, while investment-home sales rose 15.7 percent to a record 2.32 million in 2005 from an upwardly revised 2 million in 2004, according to the announcement. In 2003, NAR reported 1.57 million investment-home sales and 850,000 vacation-home sales, for a total of 2.42 million second-home sales. David Lereah, NAR's chief economist, said in a statement, "The baby boom generation is driving second-h...