CNBC

The new study, based on two surveys, shows that
23 percent of all homes purchased in 2004 were for investment, while another 13
percent were vacation homes. In addition, there was a record of 2.82 million
second home sales in 2004, up 16.3 percent from 2.42 million 2003. The
investment-home component rose 14.4 percent to 1.80 million sales in 2004 from
1.57 million in 2003, while vacation-home sales rose 19.8 percent to 1.02
million in 2004 from 850,000 in 2003.

Al Mansell, the president of the National
Association of Realtors, was just on CNBC discussing whether we are in a bubble.
In short, he said “no,” but that the recent increase in speculative buying of
homes is cause for concern, if not pause. Last year more than one-third of all homes purchased were purchased
for either investment or vacation homes.

The new study, based on two
surveys, shows that 23 percent of all homes purchased in 2004 were for
investment, while another 13 percent were vacation homes. In addition, there was
a record of 2.82 million second home sales in 2004, up 16.3 percent from 2.42
million 2003. The investment-home component rose 14.4 percent to 1.80 million
sales in 2004 from 1.57 million in 2003, while vacation-home sales rose 19.8
percent to 1.02 million in 2004 from 850,000 in
2003.

In my humble opinion, when
real estate becomes a place to “stash some cash” for a few years, this mentality
may resemble the tech bubble of a few years ago.
However,
there is still a great shortage of inventory, so … supply and demand kicks in
once again.

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