by Calculated Risk on 4/07/2006 01:26:00 PM

This is a correction to a previous post. Thanks for the comments!

The NAR precentage of investment / vacation homes is correct when New Home Sales are included in the calculation.


Click on graph for larger image.

Using the NAR sales numbers for investment homes, vacation homes, and total existing homes sales, AND the Census Bureau numbers for New Home Sales, this graph shows vacation and second home sales for the last three years. Purchases of primary residences actually fell slightly in 2005, while vacation, and especially investment purchases, rose sharply. This appears to be evidence of significant speculation.