Time is Perfect for Buying a Tucson Vacation Home

With all the doom and gloom that's being broadcast everywhere by the media, it's nice to hear that some areas of real estate are stronger then ever. According to an article in the September issue of Today's Buyer' s Rep, it seems that many people are taking advantage of lower home prices to make their dream of owning a vacation home come true. A study done by the National Association of REALTORS found that although sales of investment properties and single family homes are down right now, vacation and second homes sales have been slowly rising in record numbers. In 2006 vacation home sales actually rose 4.7% nationwide, setting a new record, while primary residence sales declined just over 4%.

Looks like vacation home buyers are getting younger as well. In 2005 the typical age of a vacation home buyer was 52, and it 2006 it dropped to 44. One possible reason for this is that people in the younger age bracket view a real estate purchase as an investment alternative to an always fluctuating stock market. Most vacation home buyers have household income over $100,000, and they want to make a long term investment they feel is wise and secure. Many of these buyers purchase with the intent of using it as primary residence when they retire, but rent it out in the mean time to offset costs.

Tucson and other Arizona areas remain popular destinations for vacation home buyers, and have a big impact on the local real estate market. Between 2000 and 2004, 28% of the annual average growth in Arizona resulted from purchases of vacation or second homes. Arizona fell second to Nevada, who contributed 35% of the annual average growth during this period to vacation or second home buyers. Tucson's dry climate and warm temperatures are perfect for enjoying many of the outdoor activities that vacation home buyers are looking for, like golf, hiking and bicycling.

The slowing of Tucson home sales makes it a great time for home buyers to begin their search for a vacation home. Home investors that once drove up Tucson real estate prices are now avoiding the market. This gives Tucson home buyers time to evaluate what's available and make a decision they can feel good about. Lower home prices also make it a great time to buy because after several years of price increases, the Tucson housing market is normalizing again, giving buyers a clear picture of what the home their purchasing is worth.