Magnolia TX Investment Home Sales On The Rise
Sales of investment and vacation homes surged in 2011, with the combined market share rising to the highest level since 2005, according to the National Association of REALTORS®. NAR’s 2012 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2011, shows investment-home sales jumped an extraordinary 64.5 percent to 1.23 million last year from 749,000 in 2010. Vacation home sales rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010.
Obviously, some buyers are thinking ahead. If they can afford to buy now, it makes sense to obtain a second Magnolia TX home as a vacation getaway, future retirement residence, or investment property in 2012 than to wait. If they postpone that purchase for 10 to 15 years, prices will go up, and interest rates will rise. Of course, it’s only those who are positioned well financially—folks with good credit who qualify for mortgages, or who can just pay cash—who have been able to snag Magnolia TX homes at phenomenally cheap prices recently.
According to NAR Chief Economist Lawrence Yun, “During the past year investors have been swooping into the market to take advantage of bargain home prices. Rising rental income easily beat cash sitting in banks as an added inducement.” In addition, 41 percent of investment buyers purchased more than one property, many of them paying cash. All-cash purchases have become fairly common in the Magnolia TX investment- and vacation home market during recent years: 49 percent of investment buyers paid cash in 2011, as did 42 percent of vacation-home buyers.
Investment home buyers in 2011 had a median age of 50, earned $86,100 and bought a home that was relatively close to their primary residence—a median distance of 25 miles, although 30 percent were more than 100 miles away. The typical vacation-home buyer was also 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years. Click here for more facts and figures re: these sales and their purchasers.
Unfortunately, one downside to this encouraging trend may be that investors, and to a smaller extent vacation home buyers, are outmaneuvering traditional buyers, who are less likely to have the financial means to pay cash for a Magnolia TX home and may not be able to devote as much time to searching for properties.
Whether you are new to the Magnolia Texas real estate market, thinking of moving up, or you’re an experienced investor, Pam Sitterly has the expertise, proven track record, and resources to help you buy Magnolia TX real estate for sale or market Magnolia TX homes for sale. Enthusiasm, knowledge of the area and personal concern for her client’s interests combine to make Pam an outstanding resource for your real estate transactions.
Pam works extensively to help Buyers and Sellers meet their Magnolia Texas real estate goals. For more information about buying or selling your Magnolia TX home, please call Pam at 281-723-0324 or via email with this convenient contact form.