| After years of big increases in the buying of real estate for investing, speculators fled many housing markets last year. Second-home sales dropped from 40 percent of all home sales to just 36 percent, according to a report released Monday by the National Association of Realtors (NAR). Total sales of all homes fell 4.1 percent for the year but Investment-home buying fell to 22 percent of all home sales last year compared with 28 percent in 2005. Vacation-home sales were up to 14 percent of all sales, from 12 percent the year before. NAR’s chief economist, David Lereah said the fall in investment buying was expected. “Speculators left the market in 2006, which caused investment sales to fall much faster than the primary market.” Vacation-home sales, on the other hand, are less dependent on house -price trends; they are more likely to involve lifestyle choices driven by demographic trends. Boomers with disposable income and contemplating retirement are prime customers. |  |
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