To sell, or not to sell?

An introductory guide to selling versus renting out your home in today’s real estate market

Thinking of renting out your home? Make sure you are prepared before making the leap.

Selling one’s home often seems like the obvious choice when it’s time to move; but in today’s market, the idea of renting out your home until property values recover may have a fresh appeal.

According to a recent real estate column for Smart Money magazine, the desire to either wait out the market or simply hold on to property during a temporary absence often motivates homeowners to take on landlord duties. But before committing to one option over the other, it is important to understand the financial pros and cons of your decision, including tax issues, affordability and the responsibility of taking care of tenants.

Taxation perks and penalization, as well as basic investment benefits, vary considerably depending on whether you choose to sell or rent your home; and regardless of which option you choose, there are bound to be both advantages and risks.

When homeowners decide to sell, they accrue the potential benefits of tax-free capital gain, available equity to invest in new real estate, and the simplicity of dealing solely with a single residence. However, they also risk difficulty selling at their ideal price, as well as losing out on potential appreciation value.

Based on current home prices throughout San Diego and the rest of the state, such considerations may make renting seem more lucrative to some. But be warned: while renting allows homeowners to keep their property as it (hopefully) appreciates in value, and grants them the added bonus of both tax breaks and a steady rental income, it also finds them liable for property damage and upkeep, as well as income taxes and potential legal or financial disputes with tenants.

This leads to the next deciding factor between renting and selling: namely, are you ready and willing to be a good landlord — or at least to shell out 10% of your monthly tenant income to pay a property-management firm to do the job for you? If you plan on moving out of the immediate vicinity of your current home, a property manager is a veritable necessity to ensure proper handling of maintenance issues, rent collection, tenant screening and other related concerns. Then again, if you are simply moving to another home in the same area and anticipate significant appreciation in your property’s value in the coming years, being a landlord just might work to your advantage.

Article By Vicki Johnson

Protect the American Dream Rally on May 17th

CAN YOU HEAR ME NOW? On May 17, It’ll be Yes

After the housing downturn there were calls among lawmakers and policymakers in Washington to scale back the country’s historic commitment to home ownership. Those calls continue today.

NAR President Moe Veissi (center) with leaders of several state and local associations and YPN chapters on the U.S. Capitol grounds where the Rally to Protect the American Dream will be held on May 17. 

Maybe the value of the mortgage interest deduction should be curtailed, as President Obama is suggesting in his latest budget proposal. Maybe there should be little or no federal backing of mortgages once Fannie Mae and Freddie Mac are restructured out of existence, as some bills would do. Maybe loans that lenders originate for securitization should be required to have at least 20 percent down, as banking regulators have proposed. Maybe the fees that lenders pay to have their loans guaranteed by Fannie and Freddie should go up, as Congress has just passed into law.

All of these and more add up to an attack on home ownership and raise the question of whether our children and grandchildren, despite the unquestioned good home ownership does for our country, will have the same options for buying as we or our parents had.

Here in Washington, largely behind the scenes, NAR has been waging a battle on Capitol Hill and among the regulatory agencies to try to keep some balance in this debate over home ownership and dial back the reaction to the housing downturn.

In May, though, the battle will come into sharp relief as thousands of REALTORS® join NAR President Moe Veissi and the NAR Leadership Team at a rally on the grounds of the U.S. Capitol.

The Rally to Protect the American Dream takes place on May 17 and is REALTORS®’ high-energy way of letting Washington lawmakers and policymakers know that REALTORS® are ready to go to the mat to protect this most cherished of American institutions.

“Extraordinary times call for extraordinary measures,” NAR President Veissi says.

You’ll be hearing more about the rally in the months ahead. President Veissi and other leaders in the industry are reaching out to REALTORS® across the country to join them on the ground of the Capitol for what promises to be a memorable morning.

Sharing the stage with President Veissi will be members of Congress, home buyers, and others. Theirs will be a simple message: Real estate is the bedrock of the country and the country’s REALTORS® are taking a stand to keep it that way.

Lear more in this video podcast with President Veissi.

Send any questions about the rally to rally@realtors.org.

On February 23, 2012, in Breaking News, Midyear Meeting, Politics & Government, by Robert Freedman 

HOUSING IN DEPRESSION?

Warren Buffett: “Housing In a Depression..I Was Dead Wrong About Recovery”

 

Housing in ‘Depression’
Warren Buffett owns many real estate related companies and has a leading edge perspective on the housing market. In a recent interview the World’s Richest Man had a few very poignant comments about our industry…

Warren Buffett says America’s housing sector “remains in a depression of its own” but will eventually recover as America continues to create “more households than housing units.”

In the meantime, however, Buffett writes that the company’s housing-related units continue to “sputter.”
He admits that his prediction a year ago that housing’s recovery would probably begin within “a year or so” was “dead wrong.”

Buffett writes that the housing market’s continued weakness is “the major reason a recovery in employment has so severely lagged the steady and substantial comeback we have seen in almost all other sectors of our economy.”

TAX TIME...DID YOU BUY A HOUSE LAST YEAR?

 A GUIDE TO TAXES AS A HOMEOWNER...

Hey there, homeowner! We’re happy you’ve got a slice of the American dream, and you’ll get the tax breaks that go along with it. In fact, some of these tax incentives apply to even a second home. Ooh la la!

Whether you bought, sold or just happily lived in your home this year, we’ll walk you through all the tax stuff you need to know.

Just skim the “If you …” headers to find the sections that affect you.

If You Paid Interest on Your Mortgage …

You should have received a form 1098 from your lender, which will tell you how much mortgage interest you paid. You can deduct 100% of your mortgage interest and property taxes, as long as your loan is less than $1 million, ($500,000 if you are married and filing separately). If it’s over that, the IRS will limit your deduction. But here’s the catch: You have to itemize in order to claim the deduction. This is a choice that takes a little math and thought. But basically, you calculate your total itemized deduction, compare it against the standard deduction and then take the higher deduction.

You can also deduct late payment charges (please don’t consider this an incentive to pay late) and pre-payment penalties.

If You Paid Property Tax …  (Hint: You Did)

The property tax you pay each year is deductible. Usually these property taxes are paid as part of your monthly loan payments, so you can find that information on the annual statement from your lender. Real estate taxes can be deducted on federal returns even though they may not be deductible in the state where the property is situated.

If You Had a Loan Forgiven …

Depending on the time of debt, if a lender canceled it, you could be taxed as though that canceled debt were income. For example, if you had a mortgage of $10,000, paid $2,000 and the bank canceled the rest, you would be taxed as though you had $8,000 of income.

However, thanks to the Mortgage Debt Forgiveness Relief Act of 2007, the IRS will not charge income tax on a canceled debt. That means if you got a loan modification, short sale or foreclosure on your primary residence, you won’t be hit with a tax bill for it. This applies to up to $2 million in debt ($1 million if you are married, filing separately), that you took on to:

·  Buy your primary home

• Improve your primary home
• Refinance the loan for your primary home

This will only be in effect through 2012, so if you are considering a loan modification or other cancellation of debt, try to fit it in this year if possible.

If You Made Energy-Efficiency Improvements to Your Home …

The Nonbusiness Energy Property Credit is for homeowners who made energy-efficient improvements such as installing insulation, new windows or furnaces. For 2011, you can get a credit worth 10% of the cost of the qualified efficiency improvements you made. You can claim up to $500 over your lifetime.

What if your electricity comes from your own green sources? You should check out the Residential Energy Efficient Property Credit. This credit gives homeowners 30% of what they spend on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines and fuel cell property. No cap exists on the amount of credit, except for fuel cell property.

If in this coming year you decide you want to go green for your home, the IRS suggests that you check for a certification statement that the item is eligible for a tax credit before you purchase. This can normally be found on the packaging or the company’s website. Full details are available on Form 5695.

If Your Home Was Damaged in a Disaster …

If your home was damaged by a disaster like a tornado or fire, you might be able deduct the amount that wasn’t reimbursed by home insurance. To do so, you need to know your AGI. Then multiply that by 10%, and subtract that and $100 from the amount of damage not reimbursed.

Example: Let’s say your home sustained $20,000 in hurricane damage, but you were only reimbursed $10,000 by your insurance company. $20,000-$10,000 = $10,000 in unreimbursed damage. Your AGI is $70,000, so $70,000 x 10% = $7,000. $10,000 – $7,100 = $2,900 in deductible damage.

Special Note: Should You Take the Home Office Deduction?

Provided you are actually eligible for the home office deduction (learn more so you don’t get audited), deducting the expense could either be a smart decision or a poor one. That’s because once you claim that home office, it doesn’t count as part of your private residence anymore. When you sell your house sometime down the line, you’ll either make a profit or a loss. If you make a profit, the value of your home office will be taxed as a capital gain, at a maximum rate of 25%, costing you money. If you make a loss selling your home, you can deduct the value of the home office as a loss, making you money.

How the math works out for your depends on your situation, so it’s smart to talk to your tax preparer before you deduct your home office.

If You Paid Closing Costs …

Any origination fees that you paid your mortgage lender at closing are deductible, even if your lender paid the closing costs. You can find the exact figures on your HUD-1 settlement statement, which you received from your escrow provider or title attorney at or just after closing. If you can’t seem to find it, contact your real estate agent or mortgage broker to request it.

If You Paid Property Taxes …  (Hint: You Probably Did)

Like we explained above, usually your property taxes are paid to your lender as part of your loan. But if you bought your house this year, you probably paid your fair share of the property taxes upfront. You can find out how much you paid on your settlement documents, and deduct it.

If You Paid Mortgage Discount Points …

When you pay a “point” toward your mortgage, that means you paid the equivalent of 1 percentage point of your loan upfront at closing in order to get a lower interest rate. This doesn’t go to pay off your loan, but it can save you money in the long run, which is why people do it. If you paid mortgage points, you can deduct them if:

• The loan is secured by your primary residence
• The loan was used to buy, improve or build the home
• Paying points is a common practice in the geographic area of your new home
• The points are calculated as a percentage of the loan principal
• The points are clearly outlined on the buyer’s settlement statement, and
• The amount of cash you put into the purchase of your home (including down payment, closing costs, etc.) is at least equal to the amount you were charged for the points you paid on the loan

If you paid points to refinance your home instead of buying or improving your home, you deduct a portion of what you paid each year, spread out over the life of the loan. For example, if you paid 1,000 in points to refinance a 10-year loan, then you could deduct $100 each year.

If You Took Out a Personal Home Equity Loan …

What if you took out a home equity loan to pay for something other than your home, like tuition or home improvements? Well, it depends. Part or all of the interest you pay on that loan could be deductible for up to $100,000, or $50,000 if you are married filing separately. Here’s how the math works when it comes to tuition:

Let’s say your home is worth $200,000. You currently have a mortgage worth $150,000. So your home is worth $50,000 more than the mortgage. If you take out a home equity loan to pay for tuition, then you can only deduct the interest on $50,000 of that loan. That number would be the same whether you took a loan out for $60,000 or $200,000—you can only deduct interest on $50,000 of that loan.

If you find yourself getting hit with the alternative minimum tax (AMT), then you cannot deduct any portion of the interest on a home equity loan when calculating AMT.

However, if you used that $60,000 loan to build a shed and install a pool, you can deduct all of the interest whether or not you fall under the AMT. That’s because you used the loan to improve your property.

If You Made a Profit on Your Home …

If you sold your house for more than you paid, you technically made what is called a “capital gain.” Usually capital gains are taxed, but the gain you made on your home—up to $250,000 ($500,00 for married couples filing jointly)—is exempt from income taxes. You just need to have:

• Owned the property for two years, and
• Lived in it for two out of the last five years before you sold it

If you don’t meet these requirements, all is not lost. If you had to sell your home because of:

• Death
• Divorce or legal separation
• Job loss that qualifies for unemployment compensation
• Employment changes that made it difficult for you to meet mortgage and basic living expenses
• Multiple births from the same pregnancy
• Damage from a natural or man-made disaster
• “Involuntary conversion” by a local government under eminent domain law, for example

Then the IRS will cut you some slack and only tax your gain partially. Learn more at the IRS website.

Also, if the gain you made is more than $250,000 (or $500,000 if you’re married filing jointly), dig around and see if you can find the receipts for any home improvements you made. That will establish the cost basis for the home as higher. For example, if you bought your home for $300,000 and made $50,000 in improvements, then sold it for $600,000, you can deduct that entire amount ($600,000-$350,000 = $250,000). If you hadn’t included those improvements, you would have been taxed on that extra $50,000 that exceeded the limit.

This post originally appeared on LearnVest.com on Feb. 15, 2012 and was written by Alden Vick

Disclaimer: This information is taken from an original post on LearnVest.com and the author of this BLOG is not offering legal advice and is meant as educational information to possible tax exemptions available and All tax payers should consult with a professional tax consultant or financial advisor in regards to any tax questions.

CELEBRITY HOME SALES

Patricia Arquette Sells Vine-Covered Home For Loss

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Patricia Arquette’s home

Source: IMDb

Celebrity real estate, like regular real estate, usually hits the market in the aftermath of divorce proceedings.
Patricia Arquette and former husband Thomas Jane, listed their home for sale in Mid-Wilshire, Los Angeles after they announced their divorce. First listed on the market in June 2011, Arquette’s home recently sold for $2.775 million — 20 percent less than the original asking price, according to the Real Estalker.
Arquette, best known for her role in TV’s “Medium,” which aired 2005 through 2011, purchased the vine-covered home in 2003 with Jane for $2.25 million. Arquette and Jane — of TV series “Hung” — were married in 2006, they divorced in late 2010.

Existing Home Sales SURGE!

Breaking News: National Association of Realtors - Existing Home Sales

Washington, DC, February 22, 2012

Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.

Total existing-home sales¹, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.

Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”

Total housing inventory at the end of January fell 0.4 percent to 2.31 million

existing homes available for sale, which represents a 6.1-month supply² at the current sales pace, down from a 6.4-month supply in December.

“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” Yun said. “Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time.”

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is enticing more potential home buyers. “Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” he said. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”

Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January, down from 3.96 percent in December; the rate was 4.76 percent in January 2011; record keeping began in 1971.

The national median existing-home price³ for all housing types was $154,700 in
January, down 2.0 percent from January 2011. Distressed homes⁴ – foreclosures and short sales which sell at deep discounts – accounted for 35 percent of January sales (22 percent were foreclosures and 13 percent were short sales), up from 32 percent in December; they were 37 percent in January 2011.

“Home buyers over the past three years have had some of the lowest default rates in history,” Yun said. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”

All-cash sales were unchanged at 31 percent in January; they were 32 percent in January 2011. Investors account for the bulk of cash transactions.

Investors purchased 23 percent of homes in January, up from 21 percent in December; they were 23 percent in January 2011. First-time buyers rose to 33 percent of transactions in January from 31 percent in December; they were 29 percent in January 2011.

Forty-seven percent of NAR members report that contracts settled on time in January; 21 percent had delays and 33 percent experienced contract failures. Contract cancellations are unchanged from December but were only 9 percent in January 2011; they are caused largely by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.

Single-family home sales rose 3.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 3.90 million in December, and are 2.3 percent above the 3.96 million-unit pace a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from January 2011.

Existing condominium and co-op sales increased 8.3 percent to a seasonally adjusted annual rate of 520,000 in January from 480,000 in December but are 10.3 percent lower than the 580,000-unit level in January 2011. The median existing condo price was $156,600 in January, up 2.0 percent from a year ago.

Regionally, existing-home sales in the Northeast rose 3.4 percent to an annual pace of 600,000 in January and are 7.1 percent above a year ago. The median price in the Northeast was $225,700, which is 4.2 percent below January 2011.

Existing-home sales in the Midwest increased 1.0 percent in December to a level of 980,000 and are 3.2 percent higher than January 2011. The median price in the Midwest was $122,000, down 3.9 percent from a year ago.

In the South, existing-home sales rose 3.5 percent to an annual level of 1.76 million in January but are unchanged from a year ago. The median price in the South was $134,800, which is 0.3 percent below January 2011.

Existing-home sales in the West jumped 8.8 percent to an annual pace of 1.23 million in January but are 3.1 percent below a spike in January 2011. The median price in the West was $187,100, down 1.8 percent from a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.

Big Bank Foreclosure Fraud Settlement:

How To Collect Your $2000 (Video)

February 13, 2012 · 

Big Bank Foreclosure Fraud, Robo-Signer Settlement

Now the big question is….

Who gets what?

At least $10 billion will go toward reducing the principal for borrowers who are delinquent or underwater borrowers at risk of default. That is in stark contrast to President Obamas recently proposed housing re-fi program that disallowed owners who missed more than one payment.

Remember, its estimated that in order to completely wipe out ALL of the negative equity for the 11,000,000 underwater owners it would cost…700-800 BILLION. Cold hard fact is that one in five Americans with mortgages are underwater.  On average, these homeowners are underwater by $50,000 each.  With this settlement, at least $3 billion will go toward refinancing. Other payments will go toward state governments, and the federal government.

What does this mean to you…?

Roughly one million underwater owners are expected to have their mortgage debt reduced by lenders or able to refinance their homes at lower rates. Another 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 will receive checks for about $2,000. The aid is to be distributed over three years. The settlement money will be doled out under a complicated formula that gives banks varying degrees of credit for different kinds of help. As a result, banks are incentivized to help harder-hit borrowers with homes worth far less than what they owe.

Is this the end of it…housing crisis over? You tell me…

4,000,000 have already lost their homes to foreclosure.

6,000,000 are currently IN default

11,000,000 are underwater (NOT including those who are termed, “near-underwater”. They would be underwater if they were to list their homes for sale factoring in normal selling fees etc)

Visit msnbc.com for breaking news, world news, and news about the economy

Read the settlement FAQ Here

HOMES OF U.S. PRESIDENTS

Obama, Bush, Clinton, and More:

For each of the U.S.’ former Presidents, the most famous residence they inhabit over their lifetime is undoubtedly the big white one at 1600 Pennsylvania Avenue. But before they were elected and after they left the Oval Office, these policy makers called other addresses “home, sweet, home.” In honor of Presidents’ Day, we’re taking a look at the homes of Presidents — present and past.

Barack Obama

Prior to his current digs at the White House, President Obama lived off Greenwood Avenue in Chicago. The Obamas’ home, pictured above, was built in 1917 and features 6,199 square feet of living space. President Obama and First Lady Michelle purchased the brick home in 2005 for $1,650,000, shortly after Obama was elected to Senate.

George W. Bush

When it came time for former President George W. Bush to retire from the Oval Office, the 43rd President decided to go back to his home state of Texas, picking up a sprawling 8,000-square-foot home at 10141 Daria Pl, which was a downsize from the 55,000-square-foot White House. The Bushes also purchased the property next door but tore it down in 2008. People speculated at the time that the demolition was to expand the former first family’s yard.

Bill Clinton

Unlike many other Presidents, Bill Clinton didn’t own a home during his residency at the White House. Born and raised in Arkansas, the former President and Secretary of State Hillary Clinton chose to stay on the East Coast, and purchased a home in Chappaqua, New York at the end of Clinton’s second term in office. By several accounts, the Clintons are quite popular in the small Westchester County town. Built in 1889, the Clintons’ home is situated on a cul-de-sac lot and has 5,232-square-foot of living space, 5 beds and 4 baths.

Ronald Reagan

Before Ronald Reagan lived at the White House, he lived among the star-studded hills of Pacific Palisades and Bel Air. His former Pacific Palisades property was he and wife Nancy Reagan’s home base until Reagan was elected in 1981. After two terms as the 40th President of the U.S., “The Gipper” and his wife returned to Los Angeles, picking up a prime slice of real estate in the posh Bel-Air neighborhood. The property remains Nancy Reagan’s home today.

Gerald Ford

Not one, but two of former President Gerald Ford’s homes are currently for sale — one listed in California and one in Colorado. Ford’s Vail home, pictured above, is a testament to his love of skiing and the outdoors. Listed for $9.85 million, the ski-in/ski-out home has been on and off the market starting in 2008 with a hefty price tag of $14.9 million. Gerald Ford’s other home is listed on the Rancho Mirage real estate market for significantly less. The $1.699 million listing is a mid-century ranch located on the Thunderbird Country golf course and contains some Presidential memorabilia, including a large portrait of Betty Ford hanging in the living room.

John F. Kennedy

One of America’s most famous families holds one of America’s most storied properties. The Kennedy Compound consists of 6 acres of waterfront property on Nantucket Sound in Hyannis Port, Massachusetts, a small village in the town of Barnstable. John F. Kennedy’s father, Joseph P. Kennedy, rented a summer cottage in Hyannis Port in 1926 and purchased the cottage 2 years later. The home, which Joseph enlarged and remodeled, became the summer getaway for the couple and their children, who enjoyed sailing on the sound. In 1956, after his marriage to Jacqueline Bouvier, Jack bought a smaller home nearby, and his brother Robert later purchased an adjacent home. Following the death of Massachusetts senator Ted Kennedy, the compound was donated to the Edward M. Kennedy Institute.

George Washington

While we don’t have the first President’s childhood home– the one where he chopped down a cherry tree — we do have the home where George Washington reportedly slept. It is believed that the first general hung up his wig at this 1739 homestead, named the “Fowler House.” The number of nights Washington slept here is up for debate, but if you believe the historic marker on the home, he often stayed here on his way from West Point to Connecticut. The New York home is 5,800 square feet and has 5 bedrooms and 2 baths and was recently listed on the Brewster real estate market for $500,000.

This Could Be Last Chance for Second Home

BABY BOOMERS...

Snowbirds looking for leisurely living in sunnier climates are providing a bright spot for the battered housing market. 

Each March, the National Association of Realtors assesses the previous year's trends regarding vacation- and investment-home sales. In 2010, those purchases held steady from a year earlier: 10% and 17%, respectively, of transactions. NAR's analysis of U.S. Census Bureau data show there are 7.9 million vacation homes and 41.6 million investment units in the U.S., compared with 74.8 million owner-occupied homes.

The news may be getting better for those looking to sell or broker second homes. With millions of baby boomers preparing to retire, real estate professionals are optimistic vacation and rental properties will be in even greater demand for the next several years.

NAR also sees good news in that 40.7 million people in the U.S. are between the ages of 50-59 -- a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 43.8 million people are in the primary buying demographic of 40-49 years old, while another 40.4 million are 30-39. "Even if purchases are delayed due to economic circumstances, the underlying long-term demand -- the desire for purchasing second homes -- remains because people in their 30s and 40s will reach the prime age for buying and will drive the second-home market in coming decades as conditions permit," NAR Chief Economist Lawrence Yun says.

According to NAR, the typical vacation-home buyer in 2010 was 49 years old and had a median household income of $99,500; investment-home buyers had a median age of 45 and earned an average $87,600. All-cash purchases have become prevalent in the second-home market in recent years: 59% of investment buyers paid cash in 2010, as did 36% of vacation-home buyers.
"An interesting trend is showing that people are planning to eventually occupy their vacation homes," says Jennifer DuBois, director of Realtor.com. "Thirty-four percent say they plan to use the property as a primary home in the future. So it's almost like you are buying their retirement home now."

More...Go to Article

By Joe Mont