- What is a hidden cost involved in second home ownership?
- What is the S&P/Case-Shiller Home Price Index?
- What are some examples of data I can use from Case-Shiller Indices to understand a potential second home investment?
- How well has the second home market performed in recent years?
- Why might I want to own a second home?
What is a hidden cost involved in second home ownership?
One hidden cost involved in second home ownership may be the lost opportunity of moving money out of interest- or income-bearing investments and into an investment that may potentially result in losses over a long period of time (depending on how long you choose to keep the second home).
What is the S&P/Case-Shiller Home Price Index?
The S&P/Case-Shiller Home Price Index tracks repeat sales of houses in many mar-
Many well-to-do people like the idea of owning a second, usually vacation, home, but it might not be a good investment, practically speaking.
Which metropolitan areas seem to be experiencing the greatest price growth from September 2012 to September 2013?
From September 2012 to September 2013, several metropolitan areas experienced strong growth in real estate prices, including Las Vegas (29.1%), San Francisco (25.7%), San Diego (20.9%), Atlanta (18.7%), and Detroit (17.2%).
kets, allowing for comparisons in house prices and how they may change over time. There are a diverse number of Case-Shiller Home Price Indices, including a national home price index, a 20-city composite index, a 10-city composite index, and twenty individual metro area indexes.
What are some examples of data I can use from Case-Shiller Indices to understand a potential second home investment?
You may use reports emanating from Case-Shiller Indices to discover if the price of a target property is high, low, or stable, and perhaps you may also discover whether you should buy or sell. For example, using data collected in September 2013, the S&P/Case-Shiller Indices shows that U.S. home prices rose 3.2% in the third quarter of 2013, and 11.2% over the past four quarters. In order to confirm this trend, you must analyze data near your target property, but national results indicate an increasing price trend.
How well has the second home market performed in recent years?
According to researchers at the National Association of Realtors, second home sales jumped 7% in 2011, with more than 502,000 second homes listed and sold.
Why might I want to own a second home?
Many experts agree the time may be right to purchase a second home because home prices are rising throughout the United States after decreasing by as much as 50% from their highs only a few years ago. Inventories for houses available for sale are also down in many markets, keeping prices buoyant. Mortgage interest rates are relatively favorable for prospective buyers, as they remain near their 40-year low of 3.37% for a thirty-year fixed interest rate, and near their all-time low of 2.65% for a fifteen-year fixed loan.