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NEWS IN BRIEF

Second-Home Market Remained Hot in 2001

June 09, 2002|Times staff and wire reports

Sales of second homes, including vacation homes and investment property, declined last year but remained above historic norms, and prices of second homes rose sharply, according to the National Assn. of Realtors.

There were 359,000 single-family second-home sales last year, down 4.8% from a record 377,000 sales in 1999, according to the NAR's biennial survey "Profile of Home Buyers and Sellers," which will be published later this month. However, last year recorded the second-highest sales total since the series began in 1989.

"The second-home market is extremely hot and will be for some time to come," said NAR President Martin Edwards Jr.

NAR predicted that the demographic impact alone from large numbers of people in their 40s and 50s entering the second-home market could potentially add 100,000 to 150,000 housing starts each year through the end of the decade. However, given the limited availability of desirable locations that can be developed, builders active in this market indicate actual construction starts have been about half of that level.

NAR reported that 5.5% of all homes sold last year were second homes, and estimated that half of those were for recreational use and half were held as rental property.

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