New home lot supply drops to cycle lows
Finally! Good news about the vacation housing market is here. The recent release of vacation home sales statistics by the National Association of Realtors (NAR) in their 2014 Investment and Vacation Home Buyers Survey provides a crystal clear picture of trends that we experienced first-hand in a number of such communities around the United States over the past year. For example:
The graph below illustrates where vacation home sales stood in 2013, along with our estimate of how they are likely to trend through the foreseeable future. While last year’s 30% jump is quite favorable, it is also a reflection of the historically low home prices and improved consumer confidence. As this confidence continues to improve over the coming years, we expect vacation home sales to continue to improve but will likely stabilize around the 750,000 unit mark after peaking in 2015.