Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).

“Second-home buying is very discretionary,” said Edward Leamer, an economist at the University of California, Los Angeles. “There is no force of demographics that is pushing people into buying homes as there is in primary home markets.”

In second-home markets around the country, the number of sales are shrinking even as the properties on the market increase. Appreciation at all levels is weakening, and in a few places recently have begun dropping.

Do you remember when there was coverage on people buying third homes a few years ago? What prompted that? Its all about affordability. In other words, a low monthly payment enabled some to buy that third home, let alone a second home. When affordability declines, the secondary markets tend to be most vulnerable.

Source: NYT


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One Response to “[Getting Graphic] Wait (On) A Second (Home)”

  1. jf.sellsius says:

    I agree with Mr. Leamer’s common sense observations about second homes. In my 25 plus years as a real estate attorney, I have never had a client buy a second home if he could not afford it(nor do I know of any banks that would lend the money). I think you’d find little disagreement, even amongst laymen, that second homes are luxuries & therefore discretionary.

    Comment on this: In second-home markets around the country, the number of sales are shrinking even as the properties on the market increase.

    I would say: In second home markets around the country, the number of sales are shrinking CAUSING the properties on the market to increase.