Quote:
Originally Posted by Biggd
What's happening is because of extremely low interest rates and the run up in the stock market people are taking money out of their primary residences and buying second homes in cash at an alarming rate.
When we have a recession, and we will have one again, what will people do to save their primary residence from foreclosure if they can't keep up the payments? Do they sell their primary residence which could have a bigger mortgage than the sale would bring in or do they sell their second home with no mortgage for less than what they paid for it?
In past recessions vacation area's got hit the hardest and recovered the slowest but we are in a place where we've never been before in our economy so it will be interesting to see how this plays out.
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I’m sorry but where exactly are you getting this statistic from? I find it extremely hard to believe people are pulling enough equity from there primary homes to buy a vacation home around the lake for cash. Maybe pulling equity out for a down payment I could easily see but enough to buy here in cash is highly unlikely for most.
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