2011 Investment and Vacation Home Buyers Survey

Jessica Lautz July 6, 2011

Methodology
Online panel Based on representative panel of U.S. households 1,895 households respondedrepresents 1,926 home purchases

Share of Sales

Share of Home Sales

Share of Sales 2010-2003

Buyer Characteristics

Buyer Demographics
Primary Buyers Median Age Median Household Income Percent With 2 Income Earners Racial/Ethnic Background White/Caucasian Asian/Pacific Islander Black/African American Hispanic/Latino 80% 9 6 6 78% 10 7 8 75% 15 7 7 37 $69,600 50% Vacation Buyers 49 $99,500 53% Investment Buyers 45 $87,600 48%

Age Vacation and Investment Buyers 2005-2010

Income Vacation and Investment Buyers 2005-2010

Property Characteristics

Property Differences
Primary Buyers Vacation Buyers Investment Buyers

Median Distance to Primary

Location Small town Rural area Suburb/Subdivision

NA
16% 17 49

375
22% 26 24

19
25% 17 33

Urban area/Central City

Resort area Type of Home Detached single-family Townhouse or row house

18
0 80% 6

9
19 70% 4

18
7 63% 5

Condo/duplex

12

21

29

Purchasing and Financing

First Step in the Home Search

Primary Buyers Looked online for properties for sale Looked online for information about the home buying process Contacted a real estate agent Talked with a friend or relative about the home buying process Drove-by homes/neighborhoods Visited open houses 28% 17 11 10 8 8 Vacation Buyers 29% 11 13 9 8 6 Investment Buyers 20% 11 16 11 10 8

How Buyer Purchased the Home

Difficulty of Financing

Investment and Vacation Buyers Used a Mortgage 2007-2011

Percent of Home Financed

Vacation Buyers Less than 50% 50% to 59% 60% to 69% 20 13 21 Investment Buyers 16 19 15

70% to 79%
80% to 89% 90% to 94% 95% to 99% 100% Financed the entire purchase price with a mortgage Median percent financed

20
1 4 1 5 68 70

15
16 5 2 12

Motivation and Expectations

Reasons for Purchasing Home

Vacation Properties To use for vacations or as a family retreat To use as principal residence in the future To rent to others To diversify investments/Good investment opportunity For a family member, friend or relative Because the buyer had extra money to spend For the tax benefits 84% 34 27 25 14 11 9 Investment Properties 16% 10 51 45 21 10 13

Length of Time Plan on Owning

Outlook of Buyers
52% of investment buyers and 34% of vacation buyers are likely to buy again in the next 2 years 80% of vacation buyers and 77% of investment buyers think its a good time to purchase real estate

For More Information

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