Foreign buyers fuel second-home sales, while U.S. buyers hold back

Report finds 30.6% drop in overall sales of vacation homes in 2007

Sales of vacation properties fell 30.6 percent in 2007 compared to the prior year, with investment-property purchases down 18.1 percent, according to an Investment and Vacation Home Buyers Survey report released by the National Association of Realtors.

Total sales of new and resale homes used as primary residences, by comparison, dropped 10 percent from 2006 to 2007, survey results revealed.