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NAR: Slowdown in vacation-home sales

Buyers of second homes appear hungry for bargains

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The share of second-home purchases among all home sales fell to 30 percent, according to the latest annual National Association of Realtors survey, down from 33 percent in the 2007 survey and 40 percent in 2005. Sales of primary residences dropped 13.2 percent from 2007 to 2008, while sales of vacation homes fell 30.8 percent and sales of investment homes fell 17.2 percent during the same period, NAR reported. Buyers of second homes appear to be more bargain-hungry than buyers of primary residences. The median sales price of primary residences dropped -1.8 percent from 2007 to 2008, while the median sales price plunged more dramatically for vacation properties (-23.1 percent) and investment properties (-28 percent). The median sales price of a primary residence was $196,000 in 2008, compared with $150,000 for vacation properties and $108,000 for investment properties, according to NAR. In 2006, the share of vacation-property sales was 14 percent, according to an earlier NAR...