Vacation and Investment Home Sales on the Rise

For the most part, real estate has always been a sound investment - taking into account the less than stellar bubble bursting situation - which left all of us a bit flabbergasted. Fortunately markets are really about people and when people feel confidant in purchasing homes, they do it. Regardless of the idea of the market, many of us still want to enjoy a vacation home up north or purchase a rental property to have some added monthly cash flow. And in many instances, these are smart moves because instead of spending thousands of dollars on hotels and resorts, we get a great deal on a vacation home that we can visit all year. Likewise, rental properties, for most people, are a better return on their money than letting it sit in a bank account or risking it in the volatile stock market.

Coincidentally, a recent article published on RISMedia highlighted an increase in the number of investment and vacation property sales in 2011, the highest since 2005. A 2012 survey conducted by the National Realtors Association found that investment property and vacation homes sales rose a whopping 64.5 percent from 749,000 in 2010 to 1.23 million in 2011. This is great news for anyone interested in selling their income or vacation property. It's also good news for buyers who can trust that home purchases will continue to have future value.

Many of the sold homes have been picked up by investors cashing in on low home prices. Cash buyers were also very prominent with 42% of vacation home buyers paying cash and 49% of investment property buyers. Another positive is that home prices were also on the rise. The average investment-home price was $100,000 - a 6.4 increase over 2010.

As a realtor in East Lansing, I have noted an obvious increase in the sale of rental properties. I work with a range of investors always on the look-out for rental properties in the desirable MSU campus area of East Lansing. If you want to learn more about finding a great deal on East Lansing housing, contact me at MyRealtorRob.