Thinking of a Vacation Home in Breckenridge?
The real estate market is continuing to gain strong momentum. Confidence when it comes to investing in real estate has returned, and in some cases, there has been a shift from stocks to real estate. The sale of vacation homes jumped in 2013 by 30 percent according to the National Association of Realtors. They have been tracking vacation home purchases since 2003 and last year was the largest increase gain since they began tracking.
According to the National Association of Realtors Chief Economist, Lawrence Yun, the drive of this increase in vacation home purchases is largely a result of the rising wealth and higher-income families. In addition, the stock market performed remarkably well in 2013. These two factors have given people the confidence to spend more money. Although the vacation homes sales rise in 2013 was very impressive, they were still about one-third away from the peak back in 2006.
Recently a study was conducted by Better Homes and GardenReal Estate, and the results revealed that 25% of those surveyed wanted to purchase a vacation home to use during retirement. For Baby Boomers, it is starting to make more sense to invest in a vacation home because of the improving economy and real estate market.
The sale of vacation homes accounted for 13 percent of all real estate transactions last year. Another positive indicator for a stronger market was that the median sales price increased from $150,000 in 2012 to $168,700 in 2013. This number reflects that more expensive vacation homes are being purchased.
If you and your family are thinking about purchasing a vacation home in Breckenridge, this is a great time. The interest rates are still at historical lows. The Fed has planned to increase interest rates over the next year and a half. Purchasing now could save a lot of money in the future. If you are interested in learning more about the vacation home market in Breckenridge, feel free to contact me.
Source: KeepingCurrent Matters and Wall Street Journal "Wealth Effect Drives Vacation-Home Sales". April 3, 2014.