Indulgence, not Investment
Is now the right time to shop for a second or vacation home? "Only if you expect to keep it for many years and view it as an indulgence rather than an investment," says Jeff Brown in the Buffalo News. Sales of existing homes fell 2.8 % from December to January, the fifth straight month of falling sales. Home sales were 5.2 %below those of January 2005, says the National Association of Realtors. Brown says this confirms "stories about investment properties sitting empty while speculators who'd hoped for quick turnarounds slash prices in the absence of buyers. Second homes and investment properties are hit hardest in a cooling market because people don't need them."