It is no surprise that vacation and investment homes sales both set records in 2005, according to the recently-released the National Association of Realtors’ annual report. Four out of 10 residential transactions last year were for second home sales. That translates to 28% of all homes bought were for investment, and 12% were for vacation homes.
I can’t help but hope that those buyers who helped to set this new record had planned to hang on to these properties for a while and not rely on their real estate appreciation for investment income.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.