2nd Home Sales Spike: More Than One-Third of Annual Sales

by Alex Stenback on December 1, 2005

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"

Global_real_estate
Once again – Bubble? Or Not? 

2nd Home Sales Surged in 2005 [knight-ridder]
This Time, It’s (Ominously) Different [infectious greed]

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