People look at more places to call home

(This article originally ran in Colorado Springs, CO, another Dolan Media publication).

Second homes aren't just for vacation anymore, and they aren't the exclusive property of the very-well-to-do.

In 2004, 23 percent of all homes purchased were for investment, and 13 percent were for vacation, according to a study conducted by the National Association of Realtors. Real estate and new construction of course is a great investment, said Michael D. Sanderson, vice president and regional builder manager for Countrywide Home Loans.

There were 2.82 million second-home sales in 2004, up 16.3 percent from 2003, when 2.42 million were sold. As of 2003, there were 43.8 million second homes in the United States, 6.6 million of which were vacation homes and 37.2 million were investment properties, according Census Bureau data cited in a news release from the association.

The median price for vacation homes and investment homes in 2004 was $190,000 and $148,000, respectively, said Walter Molony, a spokesman for the National Association of Realtors.

But just who is buying these homes? Boomers - it's boomers, Molony said. Middle-age, middle-income baby boomers.

In 2003, the average vacation home buyer was 55 and had a median income of $71,000. Investment second- home buyers were 47 and earned $85,700 annually, Molony said. Twenty percent of second-home buyers in 1999 were buying for investment purposes. That figure shot up to 64 percent in 2004, Molony said.

The second homes people are buying range from new, custom log homes to existing homes in urban or suburban areas. Some are fancy, while others more everyday. People are buying everything, Sanderson said. Even in downtown Denver, we have so many high rises now that people are buying in those communities. Second homes are being bought all over the state.

While second-home sales are scattered throughout the state and the nation, certain areas still attract the lion's share of attention. There's always going to be certain areas more popular than others, Sanderson said. Mountainous areas and spots near lakes, rivers and the ocean are still seeing considerable interest from investment-minded folks and the retreat hungry alike.

Summit County, home to Breckenridge, has experienced growth in its second-home market, said Dennis Johnson, the National Association of Realtors director for Colorado and past president of the Colorado Association of Realtors. I would suspect that one- fourth of my clients are Colorado Springs residents. Real estate sales in Summit County totaled more than $1 billion for 2004, Johnson said. Certainly our locals have been purchasing more, but there are a lot of baby boomers.

Johnson, who works for Paffrath and Thomas Inc., said he has been working with younger couples who are looking to invest in second homes. The end of the market that is very active right now is our $400,000 to $800,000 area in Breckenridge, he said. Over 50 percent of our owners are from the Front Range.

The majority, 83 percent, of vacation homes purchased from mid- 2003 to mid-2004 were single-family detached homes with a median size of 1,290 square feet, according the association. The median size of an investment home was 1,700 square feet, and 79 percent of the purchases were single-family homes.

In 2002, the No. 1 reason people bought second homes was for personal or family vacations, Molony said. The major reason today is diversification of investments.

Wealthy or well-off, in their 30s or 60s, people want to make the most of the money they've earned. Whether it's a ski bum's paradise in Breckenridge or a standard home in the suburbs of the Front Range, second homes are likely to bring in money for many years to come.

People are tired of looking at a stock certificate in their drawer, Johnson said.

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