Second-home purchases slipping

During the first quarter of 2003, 15% of all buyers were purchasing a second home, already owned a second home or were buying a new primary residence and keeping their existing property as a second home, according to the National Assn. of Realtors.

Four percent of all homes purchased were second homes, compared with 5.5% of all purchases in 2001.

David Lereah, the trade group’s chief economist, said the survey results may reflect seasonal factors in the second-home market.

“Considering the unusually bad weather conditions across much of the country during the first quarter of this year, it’s no surprise that second homes accounted for a smaller percentage of transactions than we generally see on an annual basis,” Lereah said. “However, buying patterns show a marked shift toward second homes purchased as an investment.”

The association published a benchmark study of second-home owners in November. It showed that 78% of all second homes were used primarily for recreation. However, an examination of recent buyers shows the percentage purchasing second homes for investment purposes rose from 20% in 1999 to 37% of second home sales in 2002. The typical buyers are 47 years old and have a household income of $85,900; roughly 66% are married couples.