Throw another log on the fire. In case you missed it, second home sales in 2005 accounted for more than 30% of all residential real estate sales. Fueled by the confluence of a red-hot real estate market, retiring baby boomers, and record low interest rates, these figures have apparently suprised even the NAR. There’s also this, which we bubble watchers might find worrisome:
…the percentages don’t tell the whole story: Though baby boomers make up a large part of the second-home market, a growing number of foreign buyers are in it, taking advantage of a weaker dollar. And the opposite is true, too: Many U.S. buyers are finding the dollar purchases more in foreign markets, especially Latin America and Eastern Europe.
This real estate boom is global folks, which provides a good segue for the following chart from the OECD’s recent global real estate report via infectious greed/Paul Kedrosky – "This time, it’s ominously different"
Once again – Bubble? Or Not?
2nd Home Sales Surged in 2005 [knight-ridder]
This Time, It’s (Ominously) Different [infectious greed]
Related posts:
- Behind The Numbers: Understanding the Local Spike in Pending Sales
- Existing Home Sales Stink Up the Joint
- $8,000 First Time Buyers Tax Credit, New Home Sales
- Twin Cities Home Sales Down 12%
- Monday Linklube: Agents on bikes, home sales highs (and lows), your 14 year old sister understands the financial crisis
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