Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Want a vacation home? Prices are falling

million_dollar_homes_miami.top.jpg By Les Christie, CNNMoney


NEW YORK (CNNMoney) -- Been dreaming of a vacation home? Somewhere warm to get away? Or maybe a cabin in the woods? Prices are right if you can afford it.

The median price of a vacation home was $150,000 in 2010, down 11.2% from a year earlier, the National Association of Realtors reported Wednesday. In contrast, the national median for primary residences fell only 4.5% in 2010, according to NAR.

"The fall in prices has opened opportunities for more families to enter the second-home market," said Lawrence Yun, NAR's chief economist.

Still, vacation homes accounted for just 10% of all sales last year, and investment properties made up another 17%.

Those percentages were little changed for 2010 as home sales declined across the board. There were 543,000 vacation homes sold, down from 553,000 in 2009; investment purchases fell to 867,000 from 940,000.

One factor depressing sales was the difficulty in getting mortgages due to tight credit markets. Buyers often did an end-around this problem by paying cash. Nearly 40% of vacation home sales were cash deals, while nearly 60% of investment deals were handled that way.

Those buyers who did get mortgages brought big down payments to the closing tables, according to Walter Molony, a NAR spokesman. For vacation homes, the average was 30%, far more than the standard 20% down. Investment buyers with financing paid an average of 32% down.

Many of the second homebuyers targeted distressed properties. About 17% of investment purchases were foreclosures, while vacation homebuyers chose distressed prosperities 10% of the time, NAR said. Only 10% of families buying primary residences last year went with foreclosures. To top of page


Overnight Avg Rate Latest Change Last Week
30 yr fixed3.88%3.98%
15 yr fixed3.02%3.03%
5/1 ARM3.07%2.95%
30 yr refi3.99%4.09%
15 yr refi3.12%3.13%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
  • Find Homes for sale
    Real estate and homes for sale on Trulia

  • Property Type
  • Find a home in: New York | Atlanta | Chicago | Los Angeles
  • Washington D.C | Houston | Philadelphia | More options
Index Last Change % Change
Dow 17,550.69 -47.51 -0.27%
Nasdaq 5,105.55 -9.83 -0.19%
S&P 500 2,093.32 -4.72 -0.22%
Treasuries 2.21 0.06 2.84%
Data as of 6:17pm ET
Company Price Change % Change
Apple Inc 114.64 -3.80 -3.21%
Baxter International... 40.31 0.80 2.02%
Bank of America Corp... 17.80 0.03 0.17%
Baxalta Inc 37.10 3.95 11.92%
Frontier Communicati... 5.25 0.10 1.94%
Data as of 4:02pm ET

Sections

The company's movie studios went up 13% thanks in large part to "Avengers: Age of Ultron." More

Facebook patented a technology to allow lenders to survey your friends' credit scores and use them to approve or reject your loan application. More

Candle-Lite is committed to manufacturing in America -- which is a good thing because it contributes more than $300 million to Ohio's economy. More

You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More