Destin FL Real Estate for Vacations Hold Strong
Destin FL real estate is in one of the areas of the country that is holding strong despite stricter credit requirements. The purchase of homes using conventional methods has given way to all cash purchases. In answer to the larger down payments required and the higher credit ratings, which are out of reach of many, purchasers are using cash to buy homes and are purchasing more distressed properties. The return of market and job stability will bring more home buyers. Destin FL real estate is currently in an area of the country that is experiencing the most activity when it comes to the number of vacation homes being sold. The south had 36% of the sales of vacation homes last year.
The sales of vacation homes were down in 2010 by 1.8% from 2009. However, when compared to primary residence sales, it was a small percentage. They were down by 5.6%. Likewise, investment purchases were down in 2010 by 7.8%. Why is the number of Destin FL real estate purchases for investment purposes down so much? Investors are likely waiting for the market to bottom out before purchasing homes.
The price of vacation homes is also down with the median price at $150,000. This is an 11.2% drop from the previous year. A 10.5% drop was experienced by investment homes although primary residence prices held up – they experienced only a 4.5% decrease.
Destin FL real estate is included in the pattern that appears to be developing with purchases of vacation homes. The number one motivation for buying vacation homes is lifestyle factors. Investment purchases are driven by the desire to own rental property for income purposes. The number of vacation homes being bought that will be primary residences at some point in the future was 34%. Approximately 10% of Investors say their purchase will be a primary residence in the future.
The purchase of Destin FL real estate is also for family and friend’s use. There were 21% of investors purchasing property to be used by others and 14% of vacation home buyers that said others would be using the property they purchase.